Contrasting Graham (NYSE:GHC) & Sunlands Online Education Group (NYSE:STG)

Graham (NYSE:GHC) and Sunlands Online Education Group (NYSE:STG) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Valuation & Earnings

This table compares Graham and Sunlands Online Education Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Graham $2.70 billion 1.36 $271.21 million N/A N/A
Sunlands Online Education Group $287.10 million 0.90 -$134.83 million ($0.86) -2.78

Graham has higher revenue and earnings than Sunlands Online Education Group.

Dividends

Graham pays an annual dividend of $5.56 per share and has a dividend yield of 0.8%. Sunlands Online Education Group does not pay a dividend. Graham has increased its dividend for 2 consecutive years.

Insider and Institutional Ownership

69.0% of Graham shares are held by institutional investors. Comparatively, 26.3% of Sunlands Online Education Group shares are held by institutional investors. 21.3% of Graham shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Graham and Sunlands Online Education Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Graham 0 0 0 0 N/A
Sunlands Online Education Group 1 1 0 0 1.50

Volatility and Risk

Graham has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Sunlands Online Education Group has a beta of 3.12, meaning that its stock price is 212% more volatile than the S&P 500.

Profitability

This table compares Graham and Sunlands Online Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Graham 11.36% 8.49% 5.11%
Sunlands Online Education Group -37.32% N/A -21.44%

Summary

Graham beats Sunlands Online Education Group on 11 of the 12 factors compared between the two stocks.

Graham Company Profile

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides test preparation services and materials, as well as data science education, and training and healthcare simulation services; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to Purdue University Global. The company also offers training, test preparation, and degrees for accounting and financial services professionals; professional training courses; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates three colleges, one business school, one higher education institution, and one online learning institution. In addition, it owns and operates seven television stations; and provides social-media management tools designed to connect newsrooms with their users, as well as produces Foreign Policy magazine and ForeignPolicy.com Website. Further, the company publishes Slate, an online magazine and Website; and two French-language news magazine Websites at slate.fr and slateafrique.com. Additionally, it provides marketing solutions on social, mobile, and video platforms; home health and hospice services; burners, igniters, dampers, and controls; screw jacks, linear actuators and related linear motion products, and lifting systems; and pressure impregnated kiln-dried lumber and plywood products, as well as develops cybersecurity training and workforce development education programs. The company also offers power charging and data systems; industrial and commercial indoor lighting solutions; and electrical components and assemblies. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.

Sunlands Online Education Group Company Profile

Sunlands Technology Group, through its subsidiaries, provides online education services in the People's Republic of China. The company 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. Its STE courses cover 18 majors, including Chinese language and literature, law, pre-school education, project management, marketing, English, human resource management, business administration, business management, modern corporate governance, finance, financial management, advertising, accounting, energy management, administrative management, international trade, and computer information management. The company also provides professional certification preparation course offerings that cover various industries and professions, such as accounting, human resources, teaching, and finance. As of December 31, 2017, it had approximately 1,750 self-developed learning outcome trees covering 123,000 knowledge points. The company was formerly known as Sunlands Online Education Group. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

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