WallStSmart

Gaotu Techedu Inc DRC (GOTU)vsWalmart Inc. (WMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Walmart Inc. generates 11502% more annual revenue ($713.16B vs $6.15B). WMT leads profitability with a 3.1% profit margin vs -5.3%. GOTU earns a higher WallStSmart Score of 45/100 (D).

GOTU

Hold

45

out of 100

Grade: D

Growth: 9.3Profit: 2.0Value: 6.7Quality: 5.0

WMT

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 5.5Value: 3.7Quality: 6.0
Piotroski: 4/9Altman Z: 3.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOTUUndervalued (+53.8%)

Margin of Safety

+53.8%

Fair Value

$74.15

Current Price

$1.87

$72.28 discount

UndervaluedFair: $74.15Overvalued

Intrinsic value data unavailable for WMT.

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
2.4x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.4%8/10

Revenue surging 21.4% year-over-year

WMT4 strengths · Avg: 9.3/10
Market CapQuality
$1.02T10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.6210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Free Cash FlowQuality
$6.10B8/10

Generating 6.1B in free cash flow

Areas to Watch

GOTU4 concerns · Avg: 1.8/10
Market CapQuality
$450.68M3/10

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%

WMT4 concerns · Avg: 3.0/10
Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

PEG RatioValuation
4.782/10

Expensive relative to growth rate

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 : WMT

The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.

Bear Case : GOTU

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

Bear Case : WMT

The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 46.9x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

GOTU carries more volatility with a beta of 0.69 — expect wider price swings.

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

WMT generates stronger free cash flow (6.1B), providing more financial flexibility.

Bottom Line

GOTU scores higher overall (45/100 vs 43/100) and 21.4% revenue growth. Both earn "Hold" 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.

Walmart Inc.

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.

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