Financial Comparison: Sunlands Technology Group (NYSE:STG) & Nintendo (OTCMKTS:NTDOY)

Sunlands Technology Group (NYSE:STG) and Nintendo (OTCMKTS:NTDOY) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Volatility and Risk

Sunlands Technology Group has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Insider & Institutional Ownership

26.4% of Sunlands Technology Group shares are owned by institutional investors. Comparatively, 0.0% of Nintendo shares are owned by institutional investors. 59.7% of Sunlands Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Sunlands Technology Group and Nintendo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunlands Technology Group	$1.84 billion	0.02	$52.28 million	$3.48	0.83
Nintendo	$15.37 billion	4.54	$2.80 billion	$0.66	20.53

Nintendo has higher revenue and earnings than Sunlands Technology Group. Sunlands Technology Group is trading at a lower price-to-earnings ratio than Nintendo, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Sunlands Technology Group and Nintendo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunlands Technology Group	1	0	0	0	1.00
Nintendo	1	4	3	1	2.44

Profitability

This table compares Sunlands Technology Group and Nintendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunlands Technology Group	17.60%	32.84%	15.90%
Nintendo	21.00%	16.11%	12.47%

Dividends

Sunlands Technology Group pays an annual dividend of $0.63 per share and has a dividend yield of 21.8%. Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. Sunlands Technology Group pays out 18.1% of its earnings in the form of a dividend. Nintendo pays out 48.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sunlands Technology Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

About Sunlands Technology Group

Sunlands Technology Group, through its subsidiaries, provides online education services through online and mobile platforms in the People's Republic of China. It offers various degree- and diploma-oriented post-secondary courses, including preparation courses for the self-taught higher education examination (STE) for learners pursuing associate diplomas or bachelor's degrees, as well as for the entrance examinations of Master of Business Administration programs. The company's STE courses include Chinese language and literature, law, pre-school education, marketing, English, human resource management, business administration, business management, modern corporate governance, financial management, advertising, accounting, administrative management, computer information management, finance, chain operation management, and visual communication and design and production. It also provides professional certification preparation courses in various industries and professions, such as accounting, human resources, teaching, and finance. In addition, the company offers education services through online and mobile platforms to adult students, pursuing post-secondary, and professional educations. The company was formerly known as Sunlands Online Education Group and changed its name to Sunlands Technology Group in August 2018. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

About Nintendo

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.