Uber Technologies (NYSE:UBER) versus Sunlands Technology Group (NYSE:STG) Critical Review

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

Institutional and Insider Ownership

80.2% of Uber Technologies shares are owned by institutional investors. Comparatively, 26.4% of Sunlands Technology Group shares are owned by institutional investors. 3.7% of Uber Technologies shares are owned by company insiders. Comparatively, 59.7% of Sunlands Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Uber Technologies	19.33%	43.63%	19.24%
Sunlands Technology Group	18.99%	52.03%	18.14%

Valuation and Earnings

This table compares Uber Technologies and Sunlands Technology Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uber Technologies	$52.02 billion	2.82	$10.05 billion	$4.71	15.15
Sunlands Technology Group	$272.66 million	0.22	$46.87 million	$3.98	1.14

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Uber Technologies and Sunlands Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uber Technologies	1	6	33	1	2.83
Sunlands Technology Group	1	0	0	0	1.00

Uber Technologies presently has a consensus price target of $104.53, indicating a potential upside of 46.51%. Given Uber Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Uber Technologies is more favorable than Sunlands Technology Group.

Risk & Volatility

Uber Technologies has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Sunlands Technology Group has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Summary

Uber Technologies beats Sunlands Technology Group on 13 of the 15 factors compared between the two stocks.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

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.