WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gaotu Techedu Inc DRC generates 254% more annual revenue ($6.15B vs $1.74B). LAUR leads profitability with a 16.1% profit margin vs -5.3%. LAUR earns a higher WallStSmart Score of 67/100 (B-).

GOTU

Hold

43

out of 100

Grade: D

Growth: 9.3Profit: 2.0Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.58

LAUR

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 7.0Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.25

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOTU3 strengths · Avg: 8.7/10
EPS GrowthGrowth
103.2%10/10

Earnings expanding 103.2% YoY

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.4%8/10

Revenue surging 21.4% year-over-year

LAUR3 strengths · Avg: 9.0/10
EPS GrowthGrowth
88.4%10/10

Earnings expanding 88.4% YoY

Return on EquityProfitability
26.7%9/10

Every $100 of equity generates 27 in profit

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

Areas to Watch

GOTU4 concerns · Avg: 2.0/10
Market CapQuality
$376.76M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-33.7%2/10

ROE of -33.7% — below average capital efficiency

Altman Z-ScoreHealth
-0.582/10

Distress zone — elevated risk

Profit MarginProfitability
-5.3%1/10

Currently unprofitable

LAUR2 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Operating MarginProfitability
-10.1%1/10

Operating margin of -10.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : GOTU

The strongest argument for GOTU centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 21.4% demonstrates continued momentum.

Bull Case : LAUR

The strongest argument for LAUR centers on EPS Growth, Return on Equity, Revenue Growth. Profitability is solid with margins at 16.1% and operating margin at -10.1%. Revenue growth of 15.4% demonstrates continued momentum.

Bear Case : GOTU

The primary concerns for GOTU are Market Cap, Return on Equity, Altman Z-Score.

Bear Case : LAUR

The primary concerns for LAUR are Piotroski F-Score, Operating Margin.

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

LAUR scores higher overall (67/100 vs 43/100), backed by strong 16.1% margins and 15.4% 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.

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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