Gaotu Techedu Inc DRC (GOTU)vsTAL Education Group (TAL)
GOTU
Gaotu Techedu Inc DRC
$2.10
+0.96%
CONSUMER DEFENSIVE · Cap: $448.96M
TAL
TAL Education Group
$11.81
+2.70%
CONSUMER DEFENSIVE · Cap: $6.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Gaotu Techedu Inc DRC generates 107% more annual revenue ($6.62B vs $3.19B). TAL leads profitability with a 28.4% profit margin vs -5.0%. TAL earns a higher WallStSmart Score of 78/100 (B+).
GOTU
Avoid33
out of 100
Grade: F
TAL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for GOTU.
Margin of Safety
+89.7%
Fair Value
$114.94
Current Price
$11.81
$103.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 20.2% year-over-year
Attractively priced relative to earnings
Revenue surging 31.9% year-over-year
Earnings expanding 1360.0% YoY
Conservative balance sheet, low leverage
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of -27.0% — below average capital efficiency
Earnings declined 71.2%
Distress zone — elevated risk
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GOTU
The strongest argument for GOTU centers on Price/Book, Revenue Growth. Revenue growth of 20.2% demonstrates continued momentum.
Bull Case : TAL
The strongest argument for TAL centers on P/E Ratio, Revenue Growth, EPS Growth. Profitability is solid with margins at 28.4% and operating margin at 18.1%. Revenue growth of 31.9% demonstrates continued momentum.
Bear Case : GOTU
The primary concerns for GOTU are Market Cap, Return on Equity, EPS Growth.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
GOTU carries more volatility with a beta of 0.71 — expect wider price swings.
TAL is growing revenue faster at 31.9% — sustainability is the question.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TAL scores higher overall (78/100 vs 33/100), backed by strong 28.4% margins and 31.9% revenue growth. Both earn "Strong Buy" and "Avoid" 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.
TAL Education Group
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
TAL Education Group offers K-12 afterschool tutoring services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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