Crexendo (NASDAQ:CXDO) vs. Sunlands Technology Group (NYSE:STG) Head to Head Contrast

Sunlands Technology Group (NYSE:STG) and Crexendo (NASDAQ:CXDO) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Valuation & Earnings

This table compares Sunlands Technology Group and Crexendo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunlands Technology Group	$288.84 million	0.17	$52.28 million	$3.80	0.96
Crexendo	$68.17 million	2.84	$5.07 million	$0.17	36.59

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sunlands Technology Group and Crexendo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunlands Technology Group	1	0	0	0	1.00
Crexendo	0	1	5	0	2.83

Crexendo has a consensus target price of $9.17, suggesting a potential upside of 47.37%. Given Crexendo’s stronger consensus rating and higher probable upside, analysts clearly believe Crexendo is more favorable than Sunlands Technology Group.

Institutional and Insider Ownership

26.4% of Sunlands Technology Group shares are held by institutional investors. Comparatively, 9.5% of Crexendo shares are held by institutional investors. 59.7% of Sunlands Technology Group shares are held by insiders. Comparatively, 47.2% of Crexendo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Sunlands Technology Group has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Crexendo has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunlands Technology Group	18.06%	44.02%	17.28%
Crexendo	7.44%	13.74%	11.22%

Summary

Sunlands Technology Group beats Crexendo on 9 of the 14 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 Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.