WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Walmart Inc. generates 11334% more annual revenue ($725.30B vs $6.34B). WMT leads profitability with a 3.1% profit margin vs -6.5%. WMT earns a higher WallStSmart Score of 49/100 (D+).

GOTU

Avoid

32

out of 100

Grade: F

Growth: 6.0Profit: 2.5Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.48

WMT

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 5.5Value: 3.7Quality: 6.0
Piotroski: 4/9Altman Z: 3.66

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOTU1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

WMT3 strengths · Avg: 9.7/10
Market CapQuality
$870.06B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.6610/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
24.1%9/10

Every $100 of equity generates 24 in profit

Areas to Watch

GOTU4 concerns · Avg: 2.5/10
Market CapQuality
$371.99M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

Return on EquityProfitability
-33.6%2/10

ROE of -33.6% — below average capital efficiency

EPS GrowthGrowth
-71.2%2/10

Earnings declined 71.2%

WMT4 concerns · Avg: 3.5/10
P/E RatioValuation
38.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.5x4/10

Trading at 9.5x book value

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : GOTU

The strongest argument for GOTU centers on Price/Book. Revenue growth of 13.2% 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, Operating Margin, Return on Equity.

Bear Case : WMT

The primary concerns for WMT are P/E Ratio, Price/Book, Profit Margin. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

GOTU carries more volatility with a beta of 0.62 — expect wider price swings.

GOTU is growing revenue faster at 13.2% — sustainability is the question.

GOTU generates stronger free cash flow (247M), providing more financial flexibility.

Bottom Line

WMT scores higher overall (49/100 vs 32/100). Both earn "Hold" 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.

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.

Visit Website →

Want to dig deeper into these stocks?