WallStSmart

New Oriental Education & Technology (EDU)vsGaotu Techedu Inc DRC (GOTU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gaotu Techedu Inc DRC generates 20% more annual revenue ($6.15B vs $5.14B). EDU leads profitability with a 7.4% profit margin vs -5.3%. EDU earns a higher WallStSmart Score of 62/100 (C+).

EDU

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 5.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.06

GOTU

Hold

45

out of 100

Grade: D

Growth: 9.3Profit: 2.0Value: 5.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$112.32

Current Price

$56.49

$55.83 discount

UndervaluedFair: $112.32Overvalued

Intrinsic value data unavailable for GOTU.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU3 strengths · Avg: 8.0/10
PEG RatioValuation
0.928/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
45.9%8/10

Earnings expanding 45.9% YoY

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

Earnings expanding 103.2% YoY

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.4%8/10

Revenue surging 21.4% year-over-year

Areas to Watch

EDU1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.4%3/10

7.4% margin — thin

GOTU4 concerns · Avg: 1.8/10
Market CapQuality
$474.42M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-20.3%2/10

ROE of -20.3% — below average capital efficiency

Profit MarginProfitability
-5.3%1/10

Currently unprofitable

Operating MarginProfitability
-7.0%1/10

Operating margin of -7.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : EDU

The strongest argument for EDU centers on PEG Ratio, Price/Book, EPS Growth. Revenue growth of 14.7% demonstrates continued momentum. PEG of 0.92 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 : EDU

The primary concerns for EDU are Profit Margin.

Bear Case : GOTU

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

Key Dynamics to Monitor

EDU profiles as a value stock while GOTU is a growth play — different risk/reward profiles.

GOTU carries more volatility with a beta of 0.65 — expect wider price swings.

GOTU is growing revenue faster at 21.4% — sustainability is the question.

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

Bottom Line

EDU scores higher overall (62/100 vs 45/100) and 14.7% revenue growth. 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.

New Oriental Education & Technology

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

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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