GOTU
Gaotu Techedu Inc.
Education & Training Services
Market Cap$760M
5Y Perf.-93.7%
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Stock Comparison
GOTU vs EDU
Revenue, margins, valuation, and 5-year total return — side by side.
EDU
New Oriental Education & Technology Group Inc.
Education & Training Services
Market Cap$8.96B
5Y Perf.-53.1%
GOTU vs EDU — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | GOTU | EDU |
|---|---|---|
| Industry | Education & Training Services | Education & Training Services |
| Market Cap | $760M | $8.96B |
| Revenue (TTM) | $5.85B | $4.99B |
| Net Income (TTM) | $-374M | $367M |
| Gross Margin | 67.5% | 55.1% |
| Operating Margin | -9.1% | 9.0% |
| Forward P/E | — | 16.2x |
| Total Debt | $492M | $804M |
| Cash & Equiv. | $1.32B | $1.61B |
GOTU vs EDU — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
GOTU
EDU
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Gaotu Techedu Inc. (GOTU) | 100 | 6.3 | -93.7% |
| New Oriental Educat… (EDU) | 100 | 46.9 | -53.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: GOTU vs EDU
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: EDU leads in 6 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Gaotu Techedu Inc. is the stronger pick specifically for growth and revenue expansion. As sector peers, any of these can serve as alternatives in the same allocation.
GOTU
Gaotu Techedu Inc.
The Growth Play
GOTU is the clearest fit if your priority is growth exposure.
- Rev growth 56.0%, EPS growth -145.0%, 3Y rev CAGR -10.7%
- 56.0% revenue growth vs EDU's 13.6%
Best for: growth exposure
EDU
New Oriental Education & Technology Group Inc.
The Income Pick
EDU carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 5 yrs, beta 0.82, yield 1.1%
- 45.8% 10Y total return vs GOTU's -81.2%
- Lower volatility, beta 0.82, Low D/E 20.3%, current ratio 1.58x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | GOTU | 56.0% revenue growth vs EDU's 13.6% |
| Value | EDU | Better valuation composite |
| Quality / Margins | EDU | 7.4% margin vs GOTU's -6.4% |
| Stability / Safety | EDU | Beta 0.82 vs GOTU's 0.99, lower leverage |
| Dividends | EDU | 1.1% yield; 5-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | EDU | +17.7% vs GOTU's -42.6% |
| Efficiency (ROA) | EDU | 4.8% ROA vs GOTU's -6.8%, ROIC 9.9% vs -47.8% |
GOTU vs EDU — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
GOTU vs EDU — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLEDULAGGINGGOTU
GOTUGaotu Techedu Inc.
0leads
EDUNew Oriental Educatio…
3leads
6 Total Categories
CATEGORYLEADERvs GOTUMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
EDU6/8
Total Returns1Y, 3Y, 5Y total returns with dividends
EDU6/6
Risk & VolatilityBeta, volatility, and downside exposure
EDU2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
Evenly matched — GOTU and EDU 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 | GOTUGaotu Techedu Inc. | EDUNew Oriental Educ… |
|---|---|---|
| RevenueTrailing 12 months | $5.8B | $5.0B |
| EBITDAEarnings before interest/tax | -$378M | $563M |
| Net IncomeAfter-tax profit | -$374M | $367M |
| Free Cash FlowCash after capex | $0 | $737M |
| Gross MarginGross profit ÷ Revenue | +67.5% | +55.1% |
| Operating MarginEBIT ÷ Revenue | -9.1% | +9.0% |
| Net MarginNet income ÷ Revenue | -6.4% | +7.4% |
| FCF MarginFCF ÷ Revenue | +1.7% | +14.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +32.9% | +6.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +66.7% | 0.0% |
Evenly matched — GOTU and EDU each lead in 3 of 6 comparable metrics.
Valuation Metrics
Evenly matched — GOTU and EDU each lead in 2 of 4 comparable metrics.
Valuation Metrics
| Metric | GOTUGaotu Techedu Inc. | EDUNew Oriental Educ… |
|---|---|---|
| Market CapShares × price | $760M | $9.0B |
| Enterprise ValueMkt cap + debt − cash | $638M | $8.2B |
| Trailing P/EPrice ÷ TTM EPS | -4.87x | 24.48x |
| 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 | 1.12x | 1.83x |
| Price / BookPrice ÷ Book value/share | 2.68x | 2.31x |
| Price / FCFMarket cap ÷ FCF | 64.92x | 14.06x |
Evenly matched — GOTU and EDU each lead in 2 of 4 comparable metrics.
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 | GOTUGaotu Techedu Inc. | EDUNew Oriental Educ… |
|---|---|---|
| ROE (TTM)Return on equity | -21.8% | +9.1% |
| ROA (TTM)Return on assets | -6.8% | +4.8% |
| ROICReturn on invested capital | -47.8% | +9.9% |
| ROCEReturn on capital employed | -39.9% | +9.5% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | 0.25x | 0.20x |
| Net DebtTotal debt minus cash | -$829M | -$809M |
| Cash & Equiv.Liquid assets | $1.3B | $1.6B |
| Total DebtShort + long-term debt | $492M | $804M |
| Interest CoverageEBIT ÷ Interest expense | — | 1570.90x |
EDU leads this category, winning 6 of 8 comparable metrics.
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 | GOTUGaotu Techedu Inc. | EDUNew Oriental Educ… |
|---|---|---|
| YTD ReturnYear-to-date | -19.3% | -2.6% |
| 1-Year ReturnPast 12 months | -42.6% | +17.7% |
| 3-Year ReturnCumulative with dividends | -32.3% | +37.0% |
| 5-Year ReturnCumulative with dividends | -92.6% | -61.2% |
| 10-Year ReturnCumulative with dividends | -81.2% | +45.8% |
| CAGR (3Y)Annualised 3-year return | -12.2% | +11.1% |
EDU leads this category, winning 6 of 6 comparable metrics.
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 | GOTUGaotu Techedu Inc. | EDUNew Oriental Educ… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 0.82x |
| 52-Week HighHighest price in past year | $4.56 | $64.97 |
| 52-Week LowLowest price in past year | $1.84 | $41.62 |
| % of 52W HighCurrent price vs 52-week peak | +43.2% | +86.7% |
| RSI (14)Momentum oscillator 0–100 | 46.6 | 45.4 |
| Avg Volume (50D)Average daily shares traded | 397K | 704K |
EDU leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates GOTU as "Hold" and EDU as "Buy". 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 | GOTUGaotu Techedu Inc. | EDUNew Oriental Educ… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $2.94 | $68.00 |
| # AnalystsCovering analysts | 10 | 24 |
| Dividend YieldAnnual dividend ÷ price | — | +1.1% |
| Dividend StreakConsecutive years of raises | — | 5 |
| Dividend / ShareAnnual DPS | — | $0.61 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.0% | +5.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
EDU leads in 3 of 6 categories — strongest in Profitability & Efficiency and Total Returns. 2 categories are tied.
Best OverallNew Oriental Education & Te… (EDU)Leads 3 of 6 categories
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GOTU vs EDU: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is GOTU or EDU 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 — GOTU or EDU?
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 — GOTU or EDU?
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 — GOTU or EDU?
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 — GOTU or EDU?
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 GOTU or EDU more undervalued right now?
Analyst consensus price targets imply the most upside for GOTU: 49.
2% to $2. 94.
07Which pays a better dividend — GOTU or EDU?
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 GOTU or EDU 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 GOTU and EDU?
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: GOTU is a small-cap high-growth stock; EDU is a small-cap quality compounder 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.
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