STG vs UDMY

For growth investors, Udemy, Inc.

(UDMY) is the stronger pick with 0. 4% 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 Udemy, Inc. (UDMY) a "Hold" — based on 12 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.

On trailing P/E, Sunlands Technology Group (STG) is the cheapest at 0.

9x versus Udemy, Inc. at 180. 2x.

Over the past 5 years, Sunlands Technology Group (STG) delivered a total return of -70.

9%, compared to -83. 2% for Udemy, Inc. (UDMY). Over 10 years, the gap is even starker: UDMY returned -83. 2% 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.

By beta (market sensitivity over 5 years), Sunlands Technology Group (STG) is the lower-risk stock at 0.

76β versus Udemy, Inc. 's 1. 18β — meaning UDMY is approximately 55% more volatile than STG relative to the S&P 500. On balance sheet safety, Udemy, Inc. (UDMY) carries a lower debt/equity ratio of 5% versus 31% for Sunlands Technology Group — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Udemy, Inc.

(UDMY) is pulling ahead at 0. 4% versus -7. 8% for Sunlands Technology Group (STG). On earnings-per-share growth, the picture is similar: Udemy, Inc. grew EPS 104. 6% year-over-year, compared to -46. 0% for Sunlands Technology Group. Over a 3-year CAGR, UDMY leads at 7. 9% 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.

Sunlands Technology Group (STG) is the more profitable company, earning 17.

2% net margin versus 0. 5% for Udemy, 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 -0. 3% for UDMY. 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.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Sunlands Technology Group (STG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

76)). Both have compounded well over 10 years (STG: -97. 2%, UDMY: -83. 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.

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; UDMY is a small-cap quality compounder stock. 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.