Financial Review: QuantaSing Group (NASDAQ:QSG) vs. 17 Education & Technology Group (NYSE:YQ)

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

Analyst Recommendations

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

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

QuantaSing Group presently has a consensus price target of $9.85, indicating a potential upside of 515.63%. Given QuantaSing Group’s higher probable upside, research analysts plainly believe QuantaSing Group is more favorable than 17 Education & Technology Group.

Risk and Volatility

QuantaSing Group has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, 17 Education & Technology Group has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500.

Insider & Institutional 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 company will outperform the market over the long term.

Profitability

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

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

Earnings & Valuation

This table compares QuantaSing Group and 17 Education & Technology Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantaSing Group	$424.94 million	0.21	-$14.97 million	$0.57	2.81
17 Education & Technology Group	$24.08 million	3.64	-$43.92 million	($4.00)	-0.57

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.

Summary

QuantaSing Group beats 17 Education & Technology Group on 9 of the 12 factors compared between the two stocks.

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.

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.