WallStSmart

Graham Holdings Co (GHC)vsGaotu Techedu Inc DRC (GOTU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gaotu Techedu Inc DRC generates 25% more annual revenue ($6.15B vs $4.91B). GHC leads profitability with a 5.9% profit margin vs -5.3%. GHC earns a higher WallStSmart Score of 51/100 (C-).

GHC

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 4.5Value: 4.7Quality: 7.5
Piotroski: 4/9Altman Z: 3.27

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

GHCSignificantly Overvalued (-145.2%)

Margin of Safety

-145.2%

Fair Value

$452.34

Current Price

$1070.23

$617.89 premium

UndervaluedFair: $452.34Overvalued

Intrinsic value data unavailable for GOTU.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHC4 strengths · Avg: 9.3/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

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

GHC4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.4%4/10

0.4% revenue growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

PEG RatioValuation
4.042/10

Expensive relative to growth rate

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 : GHC

The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.

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 : GHC

The primary concerns for GHC are Revenue Growth, Return on Equity, Profit Margin.

Bear Case : GOTU

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

Key Dynamics to Monitor

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

GHC carries more volatility with a beta of 0.81 — 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

GHC scores higher overall (51/100 vs 45/100). 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.

Graham Holdings Co

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.

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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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