Critical Survey: iHuman (NYSE:IH) & Sunlands Technology Group (NYSE:STG)

Earnings and Valuation

This table compares Sunlands Technology Group and iHuman”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunlands Technology Group	$2.05 billion	0.04	$90.26 million	$4.49	1.43
iHuman	$939.96 million	0.11	$25.48 million	$0.28	7.21

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

Volatility & Risk

Sunlands Technology Group has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, iHuman has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunlands Technology Group	21.47%	103.50%	20.40%
iHuman	11.22%	11.29%	7.45%

Insider and Institutional Ownership

26.4% of Sunlands Technology Group shares are owned by institutional investors. Comparatively, 4.9% of iHuman shares are owned by institutional investors. 59.7% of Sunlands Technology Group shares are owned by insiders. Comparatively, 63.6% of iHuman shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Sunlands Technology Group beats iHuman on 8 of the 11 factors compared between the two stocks.

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.

About iHuman

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People’s Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, iHuman Writing, iHuman Fantastic Friends, and iHuman Readers; bekids Coding, bekids Coloring, bekids Reading, bekids Puzzle, bekids Academy, and Gogo Town; and Aha World, an open-ended interactive app that nurtures a desire for discovery. It provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children’s abilities in speaking, critical thinking, independent reading, and creativity. iHuman Inc. was founded in 1996 and is based in Beijing, the People’s Republic of China.