Education & Training Services
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STG vs EDU
Revenue, margins, valuation, and 5-year total return — side by side.
Education & Training Services
STG vs EDU — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Education & Training Services | Education & Training Services |
| Market Cap | $45M | $8.96B |
| Revenue (TTM) | $2.03B | $4.99B |
| Net Income (TTM) | $385M | $367M |
| Gross Margin | 86.0% | 55.1% |
| Operating Margin | 19.2% | 9.0% |
| Forward P/E | 0.9x | 16.2x |
| Total Debt | $187M | $804M |
| Cash & Equiv. | $507M | $1.61B |
STG vs EDU — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Sunlands Technology… (STG) | 100 | 17.3 | -82.7% |
| New Oriental Educat… (EDU) | 100 | 46.9 | -53.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: STG vs EDU
Each card shows where this stock fits in a portfolio — not just who wins on paper.
STG carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 0.69
- Lower volatility, beta 0.69, Low D/E 31.2%, current ratio 1.10x
- Beta 0.69, current ratio 1.10x
EDU is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 13.6%, EPS growth 27.8%, 3Y rev CAGR 16.4%
- 45.8% 10Y total return vs STG's -97.2%
- 13.6% revenue growth vs STG's -7.8%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 13.6% revenue growth vs STG's -7.8% | |
| Value | Lower P/E (0.9x vs 16.2x) | |
| Quality / Margins | 18.9% margin vs EDU's 7.4% | |
| Stability / Safety | Beta 0.69 vs EDU's 0.82 | |
| Dividends | 1.1% yield; 5-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +17.7% vs STG's -38.4% | |
| Efficiency (ROA) | 18.1% ROA vs EDU's 4.8%, ROIC 447.4% vs 9.9% |
STG vs EDU — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
STG vs EDU — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
STG leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
EDU is the larger business by revenue, generating $5.0B annually — 2.5x STG's $2.0B. STG is the more profitable business, keeping 18.9% of every revenue dollar as net income compared to EDU's 7.4%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $2.0B | $5.0B |
| EBITDAEarnings before interest/tax | $419M | $563M |
| Net IncomeAfter-tax profit | $385M | $367M |
| Free Cash FlowCash after capex | $0 | $737M |
| Gross MarginGross profit ÷ Revenue | +86.0% | +55.1% |
| Operating MarginEBIT ÷ Revenue | +19.2% | +9.0% |
| Net MarginNet income ÷ Revenue | +18.9% | +7.4% |
| FCF MarginFCF ÷ Revenue | +9.8% | +14.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.5% | +6.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +42.9% | 0.0% |
Valuation Metrics
STG leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 0.9x trailing earnings, STG trades at a 96% valuation discount to EDU's 24.5x P/E.
| Metric | ||
|---|---|---|
| Market CapShares × price | $45M | $9.0B |
| Enterprise ValueMkt cap + debt − cash | -$2M | $8.2B |
| Trailing P/EPrice ÷ TTM EPS | 0.90x | 24.48x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 16.23x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | -0.04x | 15.23x |
| Price / SalesMarket cap ÷ Revenue | 0.15x | 1.83x |
| Price / BookPrice ÷ Book value/share | 0.51x | 2.31x |
| Price / FCFMarket cap ÷ FCF | 1.57x | 14.06x |
Profitability & Efficiency
STG leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
STG delivers a 52.0% return on equity — every $100 of shareholder capital generates $52 in annual profit, vs $9 for EDU. EDU carries lower financial leverage with a 0.20x debt-to-equity ratio, signaling a more conservative balance sheet compared to STG's 0.31x. On the Piotroski fundamental quality scale (0–9), EDU scores 7/9 vs STG's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +52.0% | +9.1% |
| ROA (TTM)Return on assets | +18.1% | +4.8% |
| ROICReturn on invested capital | +4.5% | +9.9% |
| ROCEReturn on capital employed | +24.5% | +9.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.31x | 0.20x |
| Net DebtTotal debt minus cash | -$320M | -$809M |
| Cash & Equiv.Liquid assets | $507M | $1.6B |
| Total DebtShort + long-term debt | $187M | $804M |
| Interest CoverageEBIT ÷ Interest expense | 298.47x | 1570.90x |
Total Returns (Dividends Reinvested)
EDU leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in EDU five years ago would be worth $3,884 today (with dividends reinvested), compared to $3,015 for STG. Over the past 12 months, EDU leads with a +17.7% total return vs STG's -38.4%. The 3-year compound annual growth rate (CAGR) favors EDU at 11.1% vs STG's -19.6% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -44.4% | -2.6% |
| 1-Year ReturnPast 12 months | -38.4% | +17.7% |
| 3-Year ReturnCumulative with dividends | -48.1% | +37.0% |
| 5-Year ReturnCumulative with dividends | -69.8% | -61.2% |
| 10-Year ReturnCumulative with dividends | -97.2% | +45.8% |
| CAGR (3Y)Annualised 3-year return | -19.6% | +11.1% |
Risk & Volatility
Evenly matched — STG and EDU each lead in 1 of 2 comparable metrics.
Risk & Volatility
STG is the less volatile stock with a 0.69 beta — it tends to amplify market swings less than EDU's 0.82 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. EDU currently trades 86.7% from its 52-week high vs STG's 21.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.69x | 0.82x |
| 52-Week HighHighest price in past year | $15.00 | $64.97 |
| 52-Week LowLowest price in past year | $3.04 | $41.62 |
| % of 52W HighCurrent price vs 52-week peak | +21.9% | +86.7% |
| RSI (14)Momentum oscillator 0–100 | 40.1 | 45.4 |
| Avg Volume (50D)Average daily shares traded | 3K | 704K |
Analyst Outlook
EDU leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
EDU is the only dividend payer here at 1.08% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $68.00 |
| # AnalystsCovering analysts | — | 24 |
| Dividend YieldAnnual dividend ÷ price | — | +1.1% |
| Dividend StreakConsecutive years of raises | 0 | 5 |
| Dividend / ShareAnnual DPS | — | $0.61 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.6% | +5.0% |
STG leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). EDU leads in 2 (Total Returns, Analyst Outlook). 1 tied.
STG vs EDU: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is STG or EDU a better buy right now?
For growth investors, New Oriental Education & Technology Group Inc.
(EDU) is the stronger pick with 13. 6% revenue growth year-over-year, versus -7. 8% for Sunlands Technology Group (STG). Sunlands Technology Group (STG) offers the better valuation at 0. 9x trailing P/E, making it the more compelling value choice. Analysts rate New Oriental Education & Technology Group Inc. (EDU) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — STG or EDU?
On trailing P/E, Sunlands Technology Group (STG) is the cheapest at 0.
9x versus New Oriental Education & Technology Group Inc. at 24. 5x.
03Which is the better long-term investment — STG or EDU?
Over the past 5 years, New Oriental Education & Technology Group Inc.
(EDU) delivered a total return of -61. 2%, compared to -69. 8% for Sunlands Technology Group (STG). Over 10 years, the gap is even starker: EDU returned +45. 8% versus STG's -97. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — STG or EDU?
By beta (market sensitivity over 5 years), Sunlands Technology Group (STG) is the lower-risk stock at 0.
69β versus New Oriental Education & Technology Group Inc. 's 0. 82β — meaning EDU is approximately 18% more volatile than STG relative to the S&P 500. On balance sheet safety, New Oriental Education & Technology Group Inc. (EDU) carries a lower debt/equity ratio of 20% versus 31% for Sunlands Technology Group — giving it more financial flexibility in a downturn.
05Which is growing faster — STG or EDU?
By revenue growth (latest reported year), New Oriental Education & Technology Group Inc.
(EDU) is pulling ahead at 13. 6% versus -7. 8% for Sunlands Technology Group (STG). On earnings-per-share growth, the picture is similar: New Oriental Education & Technology Group Inc. grew EPS 27. 8% year-over-year, compared to -46. 0% for Sunlands Technology Group. Over a 3-year CAGR, EDU leads at 16. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — STG or EDU?
Sunlands Technology Group (STG) is the more profitable company, earning 17.
2% net margin versus 7. 6% for New Oriental Education & Technology Group Inc. — meaning it keeps 17. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STG leads at 15. 0% versus 8. 7% for EDU. At the gross margin level — before operating expenses — STG leads at 84. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Which pays a better dividend — STG or EDU?
In this comparison, EDU (1.
1% yield) pays a dividend. STG does not pay a meaningful dividend and should not be held primarily for income.
08Is STG or EDU better for a retirement portfolio?
For long-horizon retirement investors, New Oriental Education & Technology Group Inc.
(EDU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 1. 1% yield). Both have compounded well over 10 years (EDU: +45. 8%, STG: -97. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between STG and EDU?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: STG is a small-cap deep-value stock; EDU is a small-cap quality compounder stock. EDU pays a dividend while STG does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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