Critical Contrast: 17 Education & Technology Group (NYSE:YQ) versus QuantaSing Group (NASDAQ:QSG)

17 Education & Technology Group (NYSE:YQ) and QuantaSing Group (NASDAQ:QSG) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares 17 Education & Technology Group and QuantaSing Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
17 Education & Technology Group	-147.43%	-37.66%	-28.24%
QuantaSing Group	6.69%	79.30%	18.29%

Valuation and Earnings

This table compares 17 Education & Technology Group and QuantaSing Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
17 Education & Technology Group	$24.08 million	3.46	-$43.92 million	($4.00)	-0.54
QuantaSing Group	$424.94 million	0.21	-$14.97 million	$0.57	2.82

QuantaSing Group has higher revenue and earnings than 17 Education & Technology Group. 17 Education & Technology Group is trading at a lower price-to-earnings ratio than QuantaSing Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

3.5% of 17 Education & Technology Group shares are owned by institutional investors. 23.1% of 17 Education & Technology Group 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.

Analyst Ratings

This is a summary of recent recommendations for 17 Education & Technology Group and QuantaSing Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
17 Education & Technology Group	0	0	0	0	N/A
QuantaSing Group	0	1	1	0	2.50

QuantaSing Group has a consensus target price of $9.85, suggesting a potential upside of 511.80%. Given QuantaSing Group’s higher probable upside, analysts clearly believe QuantaSing Group is more favorable than 17 Education & Technology Group.

Volatility & Risk

17 Education & Technology Group has a beta of -0.23, suggesting that its share price is 123% less volatile than the S&P 500. Comparatively, QuantaSing Group has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Summary

QuantaSing Group beats 17 Education & Technology Group on 10 of the 13 factors compared between the two stocks.

About 17 Education & Technology Group

17 Education & Technology Group Inc., an education technology company, provides education and education technology services in the People's Republic of China. The company offers other educational products and services, including membership-based premium educational content subscriptions for educational contents, light courses, chinese reading, math oral arithmetic, reading machines, study plans, and associated services. It also provides teaching and learning SaaS solutions, such as education informatization services for education-related government entities, schools, and service providers. 17 Education & Technology Group Inc. was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.