WallStSmart

Gaotu Techedu Inc DRC (GOTU)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 677% more annual revenue ($49.28B vs $6.34B). KO leads profitability with a 27.8% profit margin vs -6.5%. KO earns a higher WallStSmart Score of 65/100 (B-).

GOTU

Avoid

32

out of 100

Grade: F

Growth: 6.0Profit: 2.5Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.48

KO

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for GOTU.

KOSignificantly Overvalued (-42.9%)

Margin of Safety

-42.9%

Fair Value

$61.78

Current Price

$89.13

$27.35 premium

UndervaluedFair: $61.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOTU1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

KO5 strengths · Avg: 9.4/10
Market CapQuality
$353.32B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.75B8/10

Generating 1.8B in free cash flow

Areas to Watch

GOTU4 concerns · Avg: 2.5/10
Market CapQuality
$371.99M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

Return on EquityProfitability
-33.6%2/10

ROE of -33.6% — below average capital efficiency

EPS GrowthGrowth
-71.2%2/10

Earnings declined 71.2%

KO4 concerns · Avg: 3.3/10
P/E RatioValuation
25.9x4/10

Moderate valuation

Price/BookValuation
11.4x4/10

Trading at 11.4x book value

Debt/EquityHealth
1.303/10

Elevated debt levels

PEG RatioValuation
4.012/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GOTU

The strongest argument for GOTU centers on Price/Book. Revenue growth of 13.2% demonstrates continued momentum.

Bull Case : KO

The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : GOTU

The primary concerns for GOTU are Market Cap, Operating Margin, Return on Equity.

Bear Case : KO

The primary concerns for KO are P/E Ratio, Price/Book, Debt/Equity.

Key Dynamics to Monitor

GOTU profiles as a turnaround stock while KO is a mature play — different risk/reward profiles.

GOTU carries more volatility with a beta of 0.62 — expect wider price swings.

GOTU is growing revenue faster at 13.2% — sustainability is the question.

KO generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

KO scores higher overall (65/100 vs 32/100), backed by strong 27.8% margins and 12.1% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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.

The Coca-Cola Company

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.

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