GSX Techedu (GSX) Competitors

GSX Techedu (NYSE:GSX) and Gaotu Techedu (NYSE:GOTU) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, media sentiment, valuation, institutional ownership, profitability, analyst recommendations and community ranking.

Does the MarketBeat Community prefer GSX or GOTU?

GSX Techedu received 62 more outperform votes than Gaotu Techedu when rated by MarketBeat users. Likewise, 59.63% of users gave GSX Techedu an outperform vote while only 21.43% of users gave Gaotu Techedu an outperform vote.

Company	Underperform	Outperform
GSX Techedu	Outperform Votes 65 59.63%	Underperform Votes 44 40.37%
Gaotu Techedu	Outperform Votes 3 21.43%	Underperform Votes 11 78.57%

Does the media refer more to GSX or GOTU?

In the previous week, GSX Techedu had 1 more articles in the media than Gaotu Techedu. MarketBeat recorded 2 mentions for GSX Techedu and 1 mentions for Gaotu Techedu. Gaotu Techedu's average media sentiment score of 1.00 beat GSX Techedu's score of 0.00 indicating that Gaotu Techedu is being referred to more favorably in the news media.

Company	Overall Sentiment
GSX Techedu	Neutral
Gaotu Techedu	Positive

Do insiders & institutionals believe in GSX or GOTU?

34.8% of GSX Techedu shares are owned by institutional investors. Comparatively, 48.4% of Gaotu Techedu shares are owned by institutional investors. 4.8% of GSX Techedu shares are owned by company insiders. Comparatively, 44.9% of Gaotu Techedu shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Do analysts recommend GSX or GOTU?

Gaotu Techedu has a consensus target price of $6.58, suggesting a potential downside of 10.42%. Given Gaotu Techedu's higher possible upside, analysts clearly believe Gaotu Techedu is more favorable than GSX Techedu.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSX Techedu	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	N/A
Gaotu Techedu	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.50

Which has higher earnings and valuation, GSX or GOTU?

GSX Techedu has higher earnings, but lower revenue than Gaotu Techedu. Gaotu Techedu is trading at a lower price-to-earnings ratio than GSX 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
GSX Techedu	$303.78M	5.73	$32.56M	$0.13	56.15
Gaotu Techedu	$417.02M	4.59	-$1.03M	-$0.01	-733.27

Which has more volatility & risk, GSX or GOTU?

GSX Techedu has a beta of -0.5, indicating that its share price is 150% less volatile than the S&P 500. Comparatively, Gaotu Techedu has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Is GSX or GOTU more profitable?

Gaotu Techedu has a net margin of -0.10% compared to GSX Techedu's net margin of -10.56%. Gaotu Techedu's return on equity of -0.10% beat GSX Techedu's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
GSX Techedu	-10.56%	-45.36%	-14.85%
Gaotu Techedu	-0.10%	-0.10%	-0.06%

Summary

Gaotu Techedu beats GSX Techedu on 10 of the 17 factors compared between the two stocks.