Graham Holdings Co (GHC)vsGaotu Techedu Inc DRC (GOTU)
GHC
Graham Holdings Co
$1,132.53
+1.48%
CONSUMER DEFENSIVE · Cap: $5.06B
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 23% more annual revenue ($6.15B vs $4.98B). GHC leads profitability with a 6.0% profit margin vs -5.3%. GHC earns a higher WallStSmart Score of 56/100 (C).
GHC
Buy56
out of 100
Grade: C
GOTU
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.0%
Fair Value
$840.48
Current Price
$1132.53
$292.05 premium
Intrinsic value data unavailable for GOTU.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Earnings expanding 21.4% YoY
Earnings expanding 103.2% YoY
Reasonable price relative to book value
Revenue surging 21.4% year-over-year
Areas to Watch
ROE of 6.3% — below average capital efficiency
6.0% margin — thin
Expensive relative to growth rate
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 : GHC
The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.
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 : GHC
The primary concerns for GHC are Return on Equity, Profit Margin, PEG Ratio.
Bear Case : GOTU
The primary concerns for GOTU are Market Cap, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
GHC profiles as a value stock while GOTU is a growth play — different risk/reward profiles.
GHC carries more volatility with a beta of 0.72 — 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.
Bottom Line
GHC scores higher overall (56/100 vs 43/100). Both earn "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.
Graham Holdings Co
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.
Visit Website →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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