Gaotu Techedu (GOTU) Competitors

Driven Brands (NASDAQ:DRVN) and Gaotu Techedu (NYSE:GOTU) are both personal services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk, dividends and media sentiment.

Which has more risk and volatility, DRVN or GOTU?

Driven Brands has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Gaotu Techedu has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Do institutionals & insiders hold more shares of DRVN or GOTU?

77.1% of Driven Brands shares are owned by institutional investors. Comparatively, 48.4% of Gaotu Techedu shares are owned by institutional investors. 2.3% of Driven Brands 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Does the media prefer DRVN or GOTU?

In the previous week, Gaotu Techedu had 1 more articles in the media than Driven Brands. MarketBeat recorded 2 mentions for Gaotu Techedu and 1 mentions for Driven Brands. Driven Brands' average media sentiment score of 1.67 beat Gaotu Techedu's score of 0.83 indicating that Driven Brands is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Driven Brands	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Gaotu Techedu	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is DRVN or GOTU more profitable?

Driven Brands has a net margin of -12.32% compared to Gaotu Techedu's net margin of -12.97%. Driven Brands' return on equity of 21.17% beat Gaotu Techedu's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Driven Brands	-12.32%	21.17%	3.04%
Gaotu Techedu	-12.97%	-37.66%	-12.86%

Do analysts rate DRVN or GOTU?

Driven Brands currently has a consensus target price of $21.60, suggesting a potential upside of 44.97%. Given Driven Brands' stronger consensus rating and higher probable upside, analysts clearly believe Driven Brands is more favorable than Gaotu Techedu.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	1 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.55
Gaotu Techedu	1 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00

Which has higher earnings and valuation, DRVN or GOTU?

Gaotu Techedu has lower revenue, but higher earnings than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than Gaotu 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
Driven Brands	$2.34B	1.05	-$292.50M	-$1.70	-8.76
Gaotu Techedu	$623.84M	1.28	-$143.71M	-$0.38	-8.28

Summary

Driven Brands beats Gaotu Techedu on 10 of the 16 factors compared between the two stocks.