Critical Review: Sunlands Technology Group (NYSE:STG) and Vitru (NASDAQ:VTRU)

Sunlands Technology Group (NYSE:STG) and Vitru (NASDAQ:VTRU) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Sunlands Technology Group -10.77% N/A -8.42%
Vitru 6.36% 3.13% 1.81%

Analyst Ratings

This is a summary of recent recommendations and price targets for Sunlands Technology Group and Vitru, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunlands Technology Group 0 0 0 0 N/A
Vitru 0 1 4 0 2.80

Vitru has a consensus price target of $16.75, indicating a potential upside of 6.48%. Given Vitru’s higher possible upside, analysts plainly believe Vitru is more favorable than Sunlands Technology Group.

Institutional & Insider Ownership

1.7% of Sunlands Technology Group shares are owned by institutional investors. Comparatively, 38.8% of Vitru shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Sunlands Technology Group and Vitru’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 $337.75 million 0.23 -$65.98 million N/A N/A
Vitru $100.80 million 3.60 $10.11 million $0.52 30.25

Vitru has lower revenue, but higher earnings than Sunlands Technology Group.

Summary

Vitru beats Sunlands Technology Group on 9 of the 10 factors compared between the two stocks.

About Sunlands Technology Group

Sunlands Technology Group provides on line post-secondary and professional education. The firm offers various degree-and diploma-oriented post-secondary courses through online platforms. It also provides online professional courses and educational content to help students prepare for professional certification exams and attain professional skills. The company was founded by Peng Ou and Tongbo Liu in August 2003 and is headquartered in Beijing, China.

About Vitru

Vitru Limited, together with its subsidiaries, operates as a distance learning education company in the postsecondary digital education market in Brazil. It operates through three segments: Distance Learning Undergraduate Courses, Continuing Education Courses, and On-Campus Undergraduate Courses. The company offers distance learning undergraduate courses in hybrid methodology, which consists of weekly in-person meetings with on-site tutors. Its courses primarily comprise pedagogy, business administration, accounting, physical education, vocational, engineering, and health-related courses. The company also offer continuing education courses primarily in pedagogy, finance and business, as well as in other subjects, such as law, engineering, IT, and health-related courses through hybrid model, online, and on-campus. In addition, it operates 10 campuses that offers traditional on campus undergraduate courses, including business administration, accounting, physical education, vocational, engineering, law, and health-related courses. Vitru Limited was founded in 2014 and is headquartered in Florianópolis, Brazil.

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