Gaotu Techedu (GOTU) Competitors

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

Does the MarketBeat Community favor GOTU or DRVN?

Driven Brands received 47 more outperform votes than Gaotu Techedu when rated by MarketBeat users. Likewise, 59.30% of users gave Driven Brands an outperform vote while only 25.00% of users gave Gaotu Techedu an outperform vote.

Company	Underperform	Outperform
Gaotu Techedu	Outperform Votes 4 25.00%	Underperform Votes 12 75.00%
Driven Brands	Outperform Votes 51 59.30%	Underperform Votes 35 40.70%

Does the media prefer GOTU or DRVN?

In the previous week, Driven Brands had 3 more articles in the media than Gaotu Techedu. MarketBeat recorded 5 mentions for Driven Brands and 2 mentions for Gaotu Techedu. Gaotu Techedu's average media sentiment score of 0.96 beat Driven Brands' score of 0.72 indicating that Gaotu Techedu is being referred to more favorably in the media.

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

Do insiders and institutionals believe in GOTU or DRVN?

48.4% of Gaotu Techedu shares are owned by institutional investors. Comparatively, 77.1% of Driven Brands shares are owned by institutional investors. 44.9% of Gaotu Techedu shares are owned by company insiders. Comparatively, 2.3% of Driven Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Do analysts prefer GOTU or DRVN?

Gaotu Techedu presently has a consensus target price of $7.23, indicating a potential upside of 178.08%. Driven Brands has a consensus target price of $17.86, indicating a potential upside of 13.71%. Given Gaotu Techedu's higher possible upside, research analysts clearly believe Gaotu Techedu is more favorable than Driven Brands.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaotu Techedu	1 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00
Driven Brands	0 Sell rating(s)	4 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.75

Which has stronger earnings & valuation, GOTU or DRVN?

Gaotu Techedu has higher revenue and earnings than Driven Brands. Gaotu Techedu is trading at a lower price-to-earnings ratio than Driven Brands, 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	$3.51B	0.19	-$1.03M	-$0.34	-7.65
Driven Brands	$2.33B	1.11	-$744.96M	$0.04	392.75

Which has more risk and volatility, GOTU or DRVN?

Gaotu Techedu has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, Driven Brands has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Is GOTU or DRVN more profitable?

Driven Brands has a net margin of 0.27% compared to Gaotu Techedu's net margin of -17.63%. Driven Brands' return on equity of 14.86% beat Gaotu Techedu's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Gaotu Techedu	-17.63%	-20.26%	-11.51%
Driven Brands	0.27%	14.86%	2.36%

Summary

Driven Brands beats Gaotu Techedu on 14 of the 19 factors compared between the two stocks.