WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gaotu Techedu Inc DRC generates 261% more annual revenue ($6.15B vs $1.70B). LAUR leads profitability with a 16.6% profit margin vs -5.3%. LAUR earns a higher WallStSmart Score of 79/100 (B+).

GOTU

Hold

45

out of 100

Grade: D

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

LAUR

Strong Buy

79

out of 100

Grade: B+

Growth: 8.7Profit: 9.0Value: 10.0Quality: 5.8
Piotroski: 7/9Altman Z: 2.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for GOTU.

LAURUndervalued (+61.1%)

Margin of Safety

+61.1%

Fair Value

$88.45

Current Price

$35.38

$53.07 discount

UndervaluedFair: $88.45Overvalued

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
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.4%8/10

Revenue surging 21.4% year-over-year

LAUR4 strengths · Avg: 9.3/10
Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

EPS GrowthGrowth
88.4%10/10

Earnings expanding 88.4% YoY

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Revenue GrowthGrowth
27.9%8/10

Revenue surging 27.9% year-over-year

Areas to Watch

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%

LAUR0 concerns · Avg: 0/10

No major concerns identified

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 Operating Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 16.6% and operating margin at 33.2%. Revenue growth of 27.9% demonstrates continued momentum.

Bear Case : GOTU

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

Bear Case : LAUR

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

Key Dynamics to Monitor

LAUR carries more volatility with a beta of 0.67 — expect wider price swings.

LAUR is growing revenue faster at 27.9% — sustainability is the question.

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

Bottom Line

LAUR scores higher overall (79/100 vs 45/100), backed by strong 16.6% margins and 27.9% 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.

Want to dig deeper into these stocks?