New Oriental Education & Technology (EDU)vsGaotu Techedu Inc DRC (GOTU)
EDU
New Oriental Education & Technology
$45.74
-1.15%
CONSUMER DEFENSIVE · Cap: $7.78B
GOTU
Gaotu Techedu Inc DRC
$1.67
-3.47%
CONSUMER DEFENSIVE · Cap: $376.76M
Smart Verdict
WallStSmart Research — data-driven comparison
Gaotu Techedu Inc DRC generates 14% more annual revenue ($6.15B vs $5.37B). EDU leads profitability with a 7.8% profit margin vs -5.3%. EDU earns a higher WallStSmart Score of 69/100 (B-).
EDU
Strong Buy69
out of 100
Grade: B-
GOTU
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.9%
Fair Value
$339.19
Current Price
$45.74
$293.45 discount
Intrinsic value data unavailable for GOTU.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.0% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
19.8% revenue growth
Earnings expanding 103.2% YoY
Reasonable price relative to book value
Revenue surging 21.4% year-over-year
Areas to Watch
7.8% margin — thin
Negative free cash flow — burning cash
Smaller company, higher risk/reward
ROE of -33.7% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : EDU
The strongest argument for EDU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bull Case : GOTU
The strongest argument for GOTU centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 21.4% demonstrates continued momentum.
Bear Case : EDU
The primary concerns for EDU are Profit Margin, Free Cash Flow.
Bear Case : GOTU
The primary concerns for GOTU are Market Cap, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
GOTU carries more volatility with a beta of 0.63 — expect wider price swings.
GOTU is growing revenue faster at 21.4% — sustainability is the question.
GOTU generates stronger free cash flow (247M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EDU scores higher overall (69/100 vs 43/100) and 19.8% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
New Oriental Education & Technology
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
Gaotu Techedu Inc DRC
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
Gaotu Techedu Inc., a technology-driven education company, offers K-12 online tutoring services after school in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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