Dollar Tree Inc (DLTR)vsGaotu Techedu Inc DRC (GOTU)
DLTR
Dollar Tree Inc
$94.67
-2.51%
CONSUMER DEFENSIVE · Cap: $18.88B
GOTU
Gaotu Techedu Inc DRC
$1.94
+3.74%
CONSUMER DEFENSIVE · Cap: $462.60M
Smart Verdict
WallStSmart Research — data-driven comparison
Dollar Tree Inc generates 216% more annual revenue ($19.41B vs $6.15B). DLTR leads profitability with a 6.6% profit margin vs -5.3%. DLTR earns a higher WallStSmart Score of 65/100 (B-).
DLTR
Strong Buy65
out of 100
Grade: B-
GOTU
Hold45
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.2%
Fair Value
$169.48
Current Price
$94.67
$74.81 discount
Margin of Safety
+53.8%
Fair Value
$74.15
Current Price
$1.94
$72.21 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Attractively priced relative to earnings
Earnings expanding 103.2% YoY
Reasonable price relative to book value
Revenue surging 21.4% year-over-year
Areas to Watch
Grey zone — moderate risk
6.6% margin — thin
Elevated debt levels
Smaller company, higher risk/reward
ROE of -20.3% — below average capital efficiency
Currently unprofitable
Operating margin of -7.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : DLTR
The strongest argument for DLTR centers on Return on Equity, P/E Ratio. PEG of 1.12 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 : DLTR
The primary concerns for DLTR are Altman Z-Score, Profit Margin, Debt/Equity. Debt-to-equity of 1.51 is elevated, increasing financial risk.
Bear Case : GOTU
The primary concerns for GOTU are Market Cap, Return on Equity, Profit Margin.
Key Dynamics to Monitor
DLTR profiles as a value stock while GOTU is a growth play — different risk/reward profiles.
DLTR carries more volatility with a beta of 0.74 — expect wider price swings.
GOTU is growing revenue faster at 21.4% — sustainability is the question.
DLTR generates stronger free cash flow (970M), providing more financial flexibility.
Bottom Line
DLTR scores higher overall (65/100 vs 45/100). GOTU offers better value entry with a 53.8% margin of safety. 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.
Dollar Tree Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, 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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