WallStSmart

Gaotu Techedu Inc DRC (GOTU)vsLaureate Education Inc (LAUR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gaotu Techedu Inc DRC generates 262% more annual revenue ($6.62B vs $1.83B). LAUR leads profitability with a 17.6% profit margin vs -5.0%. LAUR earns a higher WallStSmart Score of 77/100 (B+).

GOTU

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.48

LAUR

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 9.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.27

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOTU2 strengths · Avg: 8.0/10
Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

LAUR5 strengths · Avg: 9.0/10
Operating MarginProfitability
36.3%10/10

Strong operational efficiency at 36.3%

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Return on EquityProfitability
26.7%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
16.5x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
17.5%8/10

17.5% revenue growth

Areas to Watch

GOTU4 concerns · Avg: 2.3/10
Market CapQuality
$448.96M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-27.0%2/10

ROE of -27.0% — below average capital efficiency

EPS GrowthGrowth
-71.2%2/10

Earnings declined 71.2%

Altman Z-ScoreHealth
-0.482/10

Distress zone — elevated risk

LAUR0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : GOTU

The strongest argument for GOTU centers on Price/Book, Revenue Growth. Revenue growth of 20.2% demonstrates continued momentum.

Bull Case : LAUR

The strongest argument for LAUR centers on Operating Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 17.6% and operating margin at 36.3%. Revenue growth of 17.5% demonstrates continued momentum.

Bear Case : GOTU

The primary concerns for GOTU are Market Cap, Return on Equity, EPS Growth.

Bear Case : LAUR

No major red flags identified for LAUR, but monitor valuation.

Key Dynamics to Monitor

GOTU carries more volatility with a beta of 0.71 — expect wider price swings.

GOTU is growing revenue faster at 20.2% — sustainability is the question.

Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LAUR scores higher overall (77/100 vs 33/100), backed by strong 17.6% margins and 17.5% 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.

Laureate Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Laureate Education, Inc. offers higher education programs and services to students through a network of universities and institutions of higher education. The company is headquartered in Baltimore, Maryland.

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