Analyzing Sunlands Technology Group (NYSE:STG) and DoorDash (NASDAQ:DASH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunlands Technology Group	15.61%	53.39%	14.22%
DoorDash	6.57%	9.56%	5.61%

Valuation and Earnings

This table compares Sunlands Technology Group and DoorDash”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunlands Technology Group	$272.66 million	0.46	$46.87 million	$3.12	2.95
DoorDash	$11.90 billion	9.23	$123.00 million	$1.80	143.99

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

Institutional and Insider Ownership

26.4% of Sunlands Technology Group shares are owned by institutional investors. Comparatively, 90.6% of DoorDash shares are owned by institutional investors. 59.7% of Sunlands Technology Group shares are owned by company insiders. Comparatively, 5.8% of DoorDash shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Sunlands Technology Group has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sunlands Technology Group and DoorDash, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunlands Technology Group	0	0	0	0	0.00
DoorDash	0	12	22	1	2.69

DoorDash has a consensus price target of $259.1765, indicating a potential downside of 0.01%. Given DoorDash’s stronger consensus rating and higher probable upside, analysts clearly believe DoorDash is more favorable than Sunlands Technology Group.

Summary

DoorDash beats Sunlands Technology Group on 10 of the 15 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 DoorDash

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.