Gaotu Techedu (GOTU) Competitors

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

Which has stronger valuation and earnings, GOTU or DRVN?

Gaotu Techedu has higher revenue and earnings 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	$4.55B	0.15	-$1.03M	-$0.57	-4.73
Driven Brands	$2.34B	1.14	-$744.96M	-$1.82	-8.96

Is GOTU or DRVN more profitable?

Driven Brands has a net margin of 0.27% compared to Gaotu Techedu's net margin of -26.36%. 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	-26.36%	-37.79%	-19.01%
Driven Brands	0.27%	14.86%	2.36%

Do insiders & institutionals have more ownership 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, 2.6% of Driven Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Do analysts rate GOTU or DRVN?

Gaotu Techedu presently has a consensus target price of $5.81, suggesting a potential upside of 115.58%. Driven Brands has a consensus target price of $20.50, suggesting a potential upside of 25.77%. Given Gaotu Techedu's higher probable upside, equities research analysts plainly 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)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00
Driven Brands	0 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.82

Does the MarketBeat Community prefer GOTU or DRVN?

Driven Brands received 50 more outperform votes than Gaotu Techedu when rated by MarketBeat users. Likewise, 58.70% 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 54 58.70%	Underperform Votes 38 41.30%

Does the media refer more to 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. Driven Brands' average media sentiment score of 1.18 beat Gaotu Techedu's score of 0.94 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)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Driven Brands	4 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, GOTU or DRVN?

Gaotu Techedu has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Driven Brands has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Summary

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