Education & Training Services
Compare Stocks
2 / 10Stock Comparison
EDU vs GOTU
Revenue, margins, valuation, and 5-year total return — side by side.
Education & Training Services
EDU vs GOTU — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Education & Training Services | Education & Training Services |
| Market Cap | $8.96B | $760M |
| Revenue (TTM) | $4.99B | $5.85B |
| Net Income (TTM) | $367M | $-374M |
| Gross Margin | 55.1% | 67.5% |
| Operating Margin | 9.0% | -9.1% |
| Forward P/E | 16.2x | — |
| Total Debt | $804M | $492M |
| Cash & Equiv. | $1.61B | $1.32B |
EDU vs GOTU — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| New Oriental Educat… (EDU) | 100 | 46.9 | -53.1% |
| Gaotu Techedu Inc. (GOTU) | 100 | 6.3 | -93.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: EDU vs GOTU
Each card shows where this stock fits in a portfolio — not just who wins on paper.
EDU carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 5 yrs, beta 0.82, yield 1.1%
- Rev growth 13.6%, EPS growth 27.8%, 3Y rev CAGR 16.4%
- 45.8% 10Y total return vs GOTU's -81.2%
GOTU is the clearest fit if your priority is growth.
- 56.0% revenue growth vs EDU's 13.6%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 56.0% revenue growth vs EDU's 13.6% | |
| Value | Better valuation composite | |
| Quality / Margins | 7.4% margin vs GOTU's -6.4% | |
| Stability / Safety | Beta 0.82 vs GOTU's 0.99, lower leverage | |
| Dividends | 1.1% yield; 5-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +17.7% vs GOTU's -42.6% | |
| Efficiency (ROA) | 4.8% ROA vs GOTU's -6.8%, ROIC 9.9% vs -47.8% |
EDU vs GOTU — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
EDU vs GOTU — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — EDU and GOTU each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
GOTU and EDU operate at a comparable scale, with $5.8B and $5.0B in trailing revenue. EDU is the more profitable business, keeping 7.4% of every revenue dollar as net income compared to GOTU's -6.4%. On growth, GOTU holds the edge at +32.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $5.0B | $5.8B |
| EBITDAEarnings before interest/tax | $563M | -$378M |
| Net IncomeAfter-tax profit | $367M | -$374M |
| Free Cash FlowCash after capex | $737M | $0 |
| Gross MarginGross profit ÷ Revenue | +55.1% | +67.5% |
| Operating MarginEBIT ÷ Revenue | +9.0% | -9.1% |
| Net MarginNet income ÷ Revenue | +7.4% | -6.4% |
| FCF MarginFCF ÷ Revenue | +14.8% | +1.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.1% | +32.9% |
| EPS Growth (YoY)Latest quarter vs prior year | 0.0% | +66.7% |
Valuation Metrics
Evenly matched — EDU and GOTU each lead in 2 of 4 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $9.0B | $760M |
| Enterprise ValueMkt cap + debt − cash | $8.2B | $638M |
| Trailing P/EPrice ÷ TTM EPS | 24.48x | -4.87x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.23x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 15.23x | — |
| Price / SalesMarket cap ÷ Revenue | 1.83x | 1.12x |
| Price / BookPrice ÷ Book value/share | 2.31x | 2.68x |
| Price / FCFMarket cap ÷ FCF | 14.06x | 64.92x |
Profitability & Efficiency
EDU leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
EDU delivers a 9.1% return on equity — every $100 of shareholder capital generates $9 in annual profit, vs $-22 for GOTU. EDU carries lower financial leverage with a 0.20x debt-to-equity ratio, signaling a more conservative balance sheet compared to GOTU's 0.25x. On the Piotroski fundamental quality scale (0–9), EDU scores 7/9 vs GOTU's 4/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +9.1% | -21.8% |
| ROA (TTM)Return on assets | +4.8% | -6.8% |
| ROICReturn on invested capital | +9.9% | -47.8% |
| ROCEReturn on capital employed | +9.5% | -39.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 0.20x | 0.25x |
| Net DebtTotal debt minus cash | -$809M | -$829M |
| Cash & Equiv.Liquid assets | $1.6B | $1.3B |
| Total DebtShort + long-term debt | $804M | $492M |
| Interest CoverageEBIT ÷ Interest expense | 1570.90x | — |
Total Returns (Dividends Reinvested)
EDU leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in EDU five years ago would be worth $3,884 today (with dividends reinvested), compared to $738 for GOTU. Over the past 12 months, EDU leads with a +17.7% total return vs GOTU's -42.6%. The 3-year compound annual growth rate (CAGR) favors EDU at 11.1% vs GOTU's -12.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -2.6% | -19.3% |
| 1-Year ReturnPast 12 months | +17.7% | -42.6% |
| 3-Year ReturnCumulative with dividends | +37.0% | -32.3% |
| 5-Year ReturnCumulative with dividends | -61.2% | -92.6% |
| 10-Year ReturnCumulative with dividends | +45.8% | -81.2% |
| CAGR (3Y)Annualised 3-year return | +11.1% | -12.2% |
Risk & Volatility
EDU leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
EDU is the less volatile stock with a 0.82 beta — it tends to amplify market swings less than GOTU's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. EDU currently trades 86.7% from its 52-week high vs GOTU's 43.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.82x | 0.99x |
| 52-Week HighHighest price in past year | $64.97 | $4.56 |
| 52-Week LowLowest price in past year | $41.62 | $1.84 |
| % of 52W HighCurrent price vs 52-week peak | +86.7% | +43.2% |
| RSI (14)Momentum oscillator 0–100 | 45.4 | 46.6 |
| Avg Volume (50D)Average daily shares traded | 704K | 397K |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates EDU as "Buy" and GOTU as "Hold". Consensus price targets imply 49.2% upside for GOTU (target: $3) vs 20.8% for EDU (target: $68). EDU is the only dividend payer here at 1.08% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $68.00 | $2.94 |
| # AnalystsCovering analysts | 24 | 10 |
| Dividend YieldAnnual dividend ÷ price | +1.1% | — |
| Dividend StreakConsecutive years of raises | 5 | — |
| Dividend / ShareAnnual DPS | $0.61 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +5.0% | +4.0% |
EDU leads in 3 of 6 categories — strongest in Profitability & Efficiency and Total Returns. 2 categories are tied.
EDU vs GOTU: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is EDU or GOTU a better buy right now?
For growth investors, Gaotu Techedu Inc.
(GOTU) is the stronger pick with 56. 0% revenue growth year-over-year, versus 13. 6% for New Oriental Education & Technology Group Inc. (EDU). New Oriental Education & Technology Group Inc. (EDU) offers the better valuation at 24. 5x trailing P/E (16. 2x forward), making it the more compelling value choice. Analysts rate New Oriental Education & Technology Group Inc. (EDU) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — EDU or GOTU?
Over the past 5 years, New Oriental Education & Technology Group Inc.
(EDU) delivered a total return of -61. 2%, compared to -92. 6% for Gaotu Techedu Inc. (GOTU). Over 10 years, the gap is even starker: EDU returned +45. 8% versus GOTU's -81. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — EDU or GOTU?
By beta (market sensitivity over 5 years), New Oriental Education & Technology Group Inc.
(EDU) is the lower-risk stock at 0. 82β versus Gaotu Techedu Inc. 's 0. 99β — meaning GOTU is approximately 20% more volatile than EDU relative to the S&P 500. On balance sheet safety, New Oriental Education & Technology Group Inc. (EDU) carries a lower debt/equity ratio of 20% versus 25% for Gaotu Techedu Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — EDU or GOTU?
By revenue growth (latest reported year), Gaotu Techedu Inc.
(GOTU) is pulling ahead at 56. 0% versus 13. 6% for New Oriental Education & Technology Group Inc. (EDU). On earnings-per-share growth, the picture is similar: New Oriental Education & Technology Group Inc. grew EPS 27. 8% year-over-year, compared to -145. 0% for Gaotu Techedu Inc.. Over a 3-year CAGR, EDU leads at 16. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — EDU or GOTU?
New Oriental Education & Technology Group Inc.
(EDU) is the more profitable company, earning 7. 6% net margin versus -23. 0% for Gaotu Techedu Inc. — meaning it keeps 7. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EDU leads at 8. 7% versus -26. 0% for GOTU. At the gross margin level — before operating expenses — GOTU leads at 68. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is EDU or GOTU more undervalued right now?
Analyst consensus price targets imply the most upside for GOTU: 49.
2% to $2. 94.
07Which pays a better dividend — EDU or GOTU?
In this comparison, EDU (1.
1% yield) pays a dividend. GOTU does not pay a meaningful dividend and should not be held primarily for income.
08Is EDU or GOTU better for a retirement portfolio?
For long-horizon retirement investors, New Oriental Education & Technology Group Inc.
(EDU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 1. 1% yield). Both have compounded well over 10 years (EDU: +45. 8%, GOTU: -81. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between EDU and GOTU?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: EDU is a small-cap quality compounder stock; GOTU is a small-cap high-growth stock. EDU pays a dividend while GOTU does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.