Gaotu Techedu (GOTU) Competitors

Gaotu Techedu (NYSE:GOTU) and Driven Brands (NASDAQ:DRVN) are both personal services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings, media sentiment and risk.

Does the media refer more to GOTU or DRVN?

In the previous week, Driven Brands had 6 more articles in the media than Gaotu Techedu. MarketBeat recorded 9 mentions for Driven Brands and 3 mentions for Gaotu Techedu. Driven Brands' average media sentiment score of 1.55 beat Gaotu Techedu's score of 0.50 indicating that Driven Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Gaotu Techedu	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral
Driven Brands	6 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Is GOTU or DRVN more profitable?

Driven Brands has a net margin of -12.32% compared to Gaotu Techedu's net margin of -12.97%. Driven Brands' return on equity of 21.17% beat Gaotu Techedu's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Gaotu Techedu	-12.97%	-37.66%	-12.86%
Driven Brands	-12.32%	21.17%	3.04%

Do analysts rate GOTU or DRVN?

Driven Brands has a consensus target price of $21.60, suggesting a potential upside of 18.16%. Given Driven Brands' stronger consensus rating and higher probable upside, analysts clearly believe Driven Brands is more favorable than Gaotu Techedu.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaotu Techedu	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
Driven Brands	0 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.70

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

48.4% of Gaotu Techedu shares are held by institutional investors. Comparatively, 77.1% of Driven Brands shares are held by institutional investors. 44.9% of Gaotu Techedu shares are held by insiders. Comparatively, 3.5% of Driven Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Which has more risk & volatility, GOTU or DRVN?

Gaotu Techedu has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, Driven Brands has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Which has better valuation and earnings, GOTU or DRVN?

Gaotu Techedu has higher earnings, but lower revenue than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than Gaotu Techedu, 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	1.50	-$143.71M	-$0.38	-9.74
Driven Brands	$2.34B	1.28	-$292.50M	-$1.70	-10.75

Summary

Driven Brands beats Gaotu Techedu on 11 of the 16 factors compared between the two stocks.