STG
Sunlands Technology Group
Education & Training Services
Market Cap$42M
5Y Perf.-83.7%
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Stock Comparison
STG vs EDU
Revenue, margins, valuation, and 5-year total return — side by side.
EDU
New Oriental Education & Technology Group Inc.
Education & Training Services
Market Cap$8.97B
5Y Perf.-53.0%
STG vs EDU — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | STG | EDU |
|---|---|---|
| Industry | Education & Training Services | Education & Training Services |
| Market Cap | $42M | $8.97B |
| 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 | 0.8x | 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.
STG
EDU
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Sunlands Technology… (STG) | 100 | 16.3 | -83.7% |
| New Oriental Educat… (EDU) | 100 | 47.0 | -53.0% |
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.
Bottom line: STG leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. New Oriental Education & Technology Group Inc. is the stronger pick specifically for growth and revenue expansion and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
STG
Sunlands Technology Group
The Income Pick
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
Best for: income & stability and sleep-well-at-night
EDU
New Oriental Education & Technology Group Inc.
The Growth Play
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%
- 47.3% 10Y total return vs STG's -97.3%
- 13.6% revenue growth vs STG's -7.8%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | EDU | 13.6% revenue growth vs STG's -7.8% |
| Value | STG | Lower P/E (0.8x vs 16.2x) |
| Quality / Margins | STG | 18.9% margin vs EDU's 7.4% |
| Stability / Safety | STG | Beta 0.69 vs EDU's 0.82 |
| Dividends | EDU | 1.1% yield; 5-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | EDU | +19.4% vs STG's -40.8% |
| Efficiency (ROA) | STG | 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
FY 2024
FY 2025
STG vs EDU — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLSTGLAGGINGEDU
EDUNew Oriental Educatio…
2leads
STGSunlands Technology G…
3leads
6 Total Categories
CATEGORYLEADERvs EDUMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
STG5/6
Valuation MetricsMultiples, price ratios, and targets
STG5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
STG5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
EDU6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
EDU1/1
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 | STGSunlands Technolo… | EDUNew Oriental Educ… |
|---|---|---|
| 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% |
STG leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
STG leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 0.8x trailing earnings, STG trades at a 97% valuation discount to EDU's 24.5x P/E.
| Metric | STGSunlands Technolo… | EDUNew Oriental Educ… |
|---|---|---|
| Market CapShares × price | $42M | $9.0B |
| Enterprise ValueMkt cap + debt − cash | -$5M | $8.2B |
| Trailing P/EPrice ÷ TTM EPS | 0.84x | 24.50x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 16.25x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | -0.10x | 15.25x |
| Price / SalesMarket cap ÷ Revenue | 0.14x | 1.83x |
| Price / BookPrice ÷ Book value/share | 0.48x | 2.31x |
| Price / FCFMarket cap ÷ FCF | 1.47x | 14.07x |
STG leads this category, winning 5 of 5 comparable metrics.
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 | STGSunlands Technolo… | EDUNew Oriental Educ… |
|---|---|---|
| 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 |
STG leads this category, winning 5 of 9 comparable metrics.
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 $3,854 today (with dividends reinvested), compared to $2,756 for STG. Over the past 12 months, EDU leads with a +19.4% total return vs STG's -40.8%. The 3-year compound annual growth rate (CAGR) favors EDU at 11.1% vs STG's -21.3% — a key indicator of consistent wealth creation.
| Metric | STGSunlands Technolo… | EDUNew Oriental Educ… |
|---|---|---|
| YTD ReturnYear-to-date | -47.8% | -2.5% |
| 1-Year ReturnPast 12 months | -40.8% | +19.4% |
| 3-Year ReturnCumulative with dividends | -51.2% | +37.2% |
| 5-Year ReturnCumulative with dividends | -72.4% | -61.5% |
| 10-Year ReturnCumulative with dividends | -97.3% | +47.3% |
| CAGR (3Y)Annualised 3-year return | -21.3% | +11.1% |
EDU leads this category, winning 6 of 6 comparable metrics.
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 20.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | STGSunlands Technolo… | EDUNew Oriental Educ… |
|---|---|---|
| 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 | +20.6% | +86.7% |
| RSI (14)Momentum oscillator 0–100 | 39.8 | 54.8 |
| Avg Volume (50D)Average daily shares traded | 3K | 689K |
Evenly matched — STG and EDU each lead in 1 of 2 comparable metrics.
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 | STGSunlands Technolo… | EDUNew Oriental Educ… |
|---|---|---|
| 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 | +3.8% | +5.0% |
EDU leads this category, winning 1 of 1 comparable metric.
Key Takeaway
STG leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). EDU leads in 2 (Total Returns, Analyst Outlook). 1 tied.
Best OverallSunlands Technology Group (STG)Leads 3 of 6 categories
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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. 8x 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.
8x 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. 5%, compared to -72. 4% for Sunlands Technology Group (STG). Over 10 years, the gap is even starker: EDU returned +47. 3% versus STG's -97. 3%. 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: +47. 3%, STG: -97. 3%), 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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Revenue Growth>
%
(STG: 6.5% · EDU: 6.1%)Net Margin>
%
(STG: 18.9% · EDU: 7.4%)P/E Ratio<
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