Head to Head Contrast: Sunlands Technology Group (NYSE:STG) vs. KE (NYSE:BEKE)

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

Insider & Institutional Ownership

39.3% of KE shares are owned by institutional investors. Comparatively, 26.4% of Sunlands Technology Group shares are owned by institutional investors. 6.8% of KE shares are owned by insiders. Comparatively, 59.7% of Sunlands Technology Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

KE pays an annual dividend of $0.31 per share and has a dividend yield of 1.8%. Sunlands Technology Group pays an annual dividend of $0.63 per share and has a dividend yield of 14.2%. KE pays out 73.8% of its earnings in the form of a dividend. Sunlands Technology Group pays out 15.8% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KE	3.37%	5.47%	2.99%
Sunlands Technology Group	18.99%	52.03%	18.14%

Volatility and Risk

KE has a beta of -0.62, meaning that its share price is 162% less volatile than the S&P 500. Comparatively, Sunlands Technology Group has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for KE and Sunlands Technology Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	3	5	0	2.63
Sunlands Technology Group	1	0	0	0	1.00

KE presently has a consensus target price of $22.40, suggesting a potential upside of 31.57%. Given KE’s stronger consensus rating and higher probable upside, equities analysts clearly believe KE is more favorable than Sunlands Technology Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$103.52 billion	0.19	$556.89 million	$0.42	40.54
Sunlands Technology Group	$2.03 billion	0.03	$46.87 million	$3.98	1.12

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

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

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.