Gaotu Techedu Inc DRC (GOTU)vsTAL Education Group (TAL)
GOTU
Gaotu Techedu Inc DRC
$1.67
-3.47%
CONSUMER DEFENSIVE · Cap: $376.76M
TAL
TAL Education Group
$9.56
-1.65%
CONSUMER DEFENSIVE · Cap: $5.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Gaotu Techedu Inc DRC generates 104% more annual revenue ($6.15B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs -5.3%. TAL earns a higher WallStSmart Score of 68/100 (B-).
GOTU
Hold43
out of 100
Grade: D
TAL
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for GOTU.
Margin of Safety
+87.9%
Fair Value
$98.36
Current Price
$9.56
$88.80 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 103.2% YoY
Reasonable price relative to book value
Revenue surging 21.4% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 31.5% year-over-year
Earnings expanding 536.0% YoY
Conservative balance sheet, low leverage
Areas to Watch
Smaller company, higher risk/reward
ROE of -33.7% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : TAL
The strongest argument for TAL centers on P/E Ratio, Price/Book, Revenue Growth. Profitability is solid with margins at 17.6% and operating margin at 9.0%. Revenue growth of 31.5% demonstrates continued momentum.
Bear Case : GOTU
The primary concerns for GOTU are Market Cap, Return on Equity, Altman Z-Score.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
GOTU carries more volatility with a beta of 0.63 — expect wider price swings.
TAL is growing revenue faster at 31.5% — sustainability is the question.
TAL generates stronger free cash flow (816M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TAL scores higher overall (68/100 vs 43/100), backed by strong 17.6% margins and 31.5% 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.
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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