European Wax Center (EWCZ) Competitors

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

Do institutionals and insiders have more ownership in GOTU or EWCZ?

48.4% of Gaotu Techedu shares are owned by institutional investors. Comparatively, 82.1% of European Wax Center shares are owned by institutional investors. 44.9% of Gaotu Techedu shares are owned by insiders. Comparatively, 5.0% of European Wax Center shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Do analysts prefer GOTU or EWCZ?

European Wax Center has a consensus target price of $6.93, suggesting a potential upside of 76.75%. Given European Wax Center's stronger consensus rating and higher probable upside, analysts clearly believe European Wax Center is more favorable than Gaotu Techedu.

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
European Wax Center	1 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

Which has better earnings and valuation, GOTU or EWCZ?

European Wax Center has lower revenue, but higher earnings than Gaotu Techedu. Gaotu Techedu is trading at a lower price-to-earnings ratio than European Wax Center, 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	$623.84M	1.31	-$143.71M	-$0.38	-8.49
European Wax Center	$216.92M	1.00	$10.46M	$0.20	19.60

Is GOTU or EWCZ more profitable?

European Wax Center has a net margin of 4.20% compared to Gaotu Techedu's net margin of -12.97%. European Wax Center's return on equity of 28.38% beat Gaotu Techedu's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Gaotu Techedu	-12.97%	-37.66%	-12.86%
European Wax Center	4.20%	28.38%	3.93%

Does the media refer more to GOTU or EWCZ?

In the previous week, European Wax Center had 1 more articles in the media than Gaotu Techedu. MarketBeat recorded 2 mentions for European Wax Center and 1 mentions for Gaotu Techedu. European Wax Center's average media sentiment score of 0.45 beat Gaotu Techedu's score of 0.00 indicating that European Wax Center is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Gaotu Techedu	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
European Wax Center	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more volatility and risk, GOTU or EWCZ?

Gaotu Techedu has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, European Wax Center has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Summary

European Wax Center beats Gaotu Techedu on 13 of the 16 factors compared between the two stocks.