Gaotu Techedu (GOTU) Competitors

Gaotu Techedu (NYSE:GOTU) and Laureate Education (NASDAQ:LAUR) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, media sentiment, analyst recommendations, earnings and institutional ownership.

Do analysts recommend GOTU or LAUR?

Gaotu Techedu presently has a consensus price target of $5.81, suggesting a potential upside of 51.50%. Laureate Education has a consensus price target of $20.50, suggesting a potential downside of 13.50%. Given Gaotu Techedu's higher probable upside, equities analysts plainly believe Gaotu Techedu is more favorable than Laureate Education.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaotu Techedu	1 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00
Laureate Education	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50

Which has stronger valuation & earnings, GOTU or LAUR?

Laureate Education has higher revenue and earnings than Gaotu Techedu. Gaotu Techedu is trading at a lower price-to-earnings ratio than Laureate Education, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaotu Techedu	$623.84M	1.56	-$143.71M	-$0.49	-7.83
Laureate Education	$1.53B	2.31	$296.47M	$1.88	12.61

Does the media favor GOTU or LAUR?

In the previous week, Laureate Education had 8 more articles in the media than Gaotu Techedu. MarketBeat recorded 9 mentions for Laureate Education and 1 mentions for Gaotu Techedu. Laureate Education's average media sentiment score of 0.17 beat Gaotu Techedu's score of 0.00 indicating that Laureate Education is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Gaotu Techedu	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Laureate Education	0 Very Positive mention(s)	0 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Neutral

Is GOTU or LAUR more profitable?

Laureate Education has a net margin of 18.84% compared to Gaotu Techedu's net margin of -18.07%. Laureate Education's return on equity of 31.57% beat Gaotu Techedu's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Gaotu Techedu	-18.07%	-42.83%	-16.70%
Laureate Education	18.84%	31.57%	15.05%

Which has more risk and volatility, GOTU or LAUR?

Gaotu Techedu has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Laureate Education has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Do insiders and institutionals hold more shares of GOTU or LAUR?

48.4% of Gaotu Techedu shares are held by institutional investors. Comparatively, 96.3% of Laureate Education shares are held by institutional investors. 44.9% of Gaotu Techedu shares are held by insiders. Comparatively, 1.2% of Laureate Education shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Laureate Education beats Gaotu Techedu on 14 of the 16 factors compared between the two stocks.