Classover (NASDAQ:KIDZ) & Sunlands Technology Group (NYSE:STG) Head to Head Review

Sunlands Technology Group (NYSE:STG) and Classover (NASDAQ:KIDZ) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Volatility & 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, Classover has a beta of -0.71, meaning that its stock price is 171% less volatile than the S&P 500.

Institutional and Insider Ownership

26.4% of Sunlands Technology Group shares are owned by institutional investors. Comparatively, 74.7% of Classover shares are owned by institutional investors. 59.7% of Sunlands Technology Group shares are owned by company insiders. Comparatively, 0.1% of Classover shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Sunlands Technology Group and Classover, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunlands Technology Group	1	0	0	0	1.00
Classover	1	0	0	0	1.00

Valuation & Earnings

This table compares Sunlands Technology Group and Classover”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunlands Technology Group	$288.84 million	0.14	$52.28 million	$3.48	0.84
Classover	$3.37 million	0.96	-$7.05 million	$99.95	0.04

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

Profitability

This table compares Sunlands Technology Group and Classover’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%
Classover	-338.62%	-167.79%	-59.29%

Summary

Sunlands Technology Group beats Classover on 8 of the 11 factors compared between the two stocks.

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 Classover

Classover is an online enrichment program in Manhattan, New York that offers over 20 courses taught by certified instructors. It caters to children aged 4 to 17, providing personalized attention and a supportive learning environment. Classover is recognized worldwide by over 20,000 parents and children in more than 34 countries. Classover’s proprietary course platform app provides exclusive benefits to students, including access to class schedules, remaining class credits, and class history. As an official test center for the Math Kangaroo Competition and other high-value competition channels, Classover is certified to provide high-quality teaching services to help students improve their academic performance. The school’s WASC certification is a testament to its teaching quality, meeting high standards in student satisfaction, teacher qualifications, classroom environment, and course content quality. Classover limits class size to six students to ensure personalized attention, delivering over 330,000 hours of online classes with a course renewal rate exceeding 90%. The platform has helped students win competition awards, making it a recognized “The Best Parenting Tool” in the parent community.