WAFU vs GOTU vs TAL vs EDU vs PRDO

For growth investors, Gaotu Techedu Inc.

(GOTU) is the stronger pick with 56. 0% revenue growth year-over-year, versus -14. 4% for Wah Fu Education Group Limited (WAFU). TAL Education Group (TAL) offers the better valuation at 8. 8x trailing P/E (17. 6x 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.

On trailing P/E, TAL Education Group (TAL) is the cheapest at 8.

8x versus New Oriental Education & Technology Group Inc. at 23. 3x. On forward P/E, Perdoceo Education Corporation is actually cheaper at 12. 6x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Perdoceo Education Corporation (PRDO) delivered a total return of +212.

3%, compared to -92. 1% for Gaotu Techedu Inc. (GOTU). Over 10 years, the gap is even starker: PRDO returned +532. 6% 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.

By beta (market sensitivity over 5 years), Perdoceo Education Corporation (PRDO) is the lower-risk stock at 0.

30β versus Gaotu Techedu Inc. 's 1. 01β — meaning GOTU is approximately 242% more volatile than PRDO relative to the S&P 500. On balance sheet safety, Wah Fu Education Group Limited (WAFU) carries a lower debt/equity ratio of 1% versus 25% for Gaotu Techedu Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Gaotu Techedu Inc.

(GOTU) is pulling ahead at 56. 0% versus -14. 4% for Wah Fu Education Group Limited (WAFU). On earnings-per-share growth, the picture is similar: TAL Education Group grew EPS 24. 7% 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.

Perdoceo Education Corporation (PRDO) is the more profitable company, earning 18.

9% net margin versus -23. 0% for Gaotu Techedu Inc. — meaning it keeps 18. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PRDO leads at 23. 2% versus -26. 0% for GOTU. At the gross margin level — before operating expenses — PRDO leads at 71. 7%, 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.

On forward earnings alone, Perdoceo Education Corporation (PRDO) trades at 12.

6x forward P/E versus 17. 6x for TAL Education Group — 5. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TAL: 62. 3% to $18. 00.

In this comparison, PRDO (1.

5% yield), EDU (1. 1% yield) pay a dividend. WAFU, GOTU, TAL do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Perdoceo Education Corporation (PRDO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

30), 1. 5% yield, +532. 6% 10Y return). Both have compounded well over 10 years (PRDO: +532. 6%, 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.

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: WAFU is a small-cap quality compounder stock; GOTU is a small-cap high-growth stock; TAL is a small-cap high-growth stock; EDU is a small-cap quality compounder stock; PRDO is a small-cap high-growth stock. EDU, PRDO pay a dividend while WAFU, GOTU, TAL do 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.