Stagwell (STGW) Competitors

Stagwell (NASDAQ:STGW) and Gaotu Techedu (NYSE:GOTU) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their media sentiment, risk, analyst recommendations, community ranking, dividends, earnings, profitability, valuation and institutional ownership.

Is STGW or GOTU more profitable?

Gaotu Techedu has a net margin of -0.10% compared to Stagwell's net margin of -0.16%. Stagwell's return on equity of 7.31% beat Gaotu Techedu's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Stagwell	-0.16%	7.31%	1.50%
Gaotu Techedu	-0.10%	-0.10%	-0.06%

Does the MarketBeat Community believe in STGW or GOTU?

Stagwell received 26 more outperform votes than Gaotu Techedu when rated by MarketBeat users. Likewise, 78.38% of users gave Stagwell an outperform vote while only 21.43% of users gave Gaotu Techedu an outperform vote.

Company	Underperform	Outperform
Stagwell	Outperform Votes 29 78.38%	Underperform Votes 8 21.62%
Gaotu Techedu	Outperform Votes 3 21.43%	Underperform Votes 11 78.57%

Which has better valuation & earnings, STGW or GOTU?

Stagwell has higher revenue and earnings than Gaotu Techedu. Gaotu Techedu is trading at a lower price-to-earnings ratio than Stagwell, 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
Stagwell	$2.53B	0.73	$130K	-$0.03	-228.00
Gaotu Techedu	$417.02M	4.82	-$1.03M	-$0.01	-776.22

Do insiders and institutionals hold more shares of STGW or GOTU?

35.6% of Stagwell shares are held by institutional investors. Comparatively, 48.4% of Gaotu Techedu shares are held by institutional investors. 4.9% of Stagwell shares are held by company insiders. Comparatively, 44.9% of Gaotu Techedu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Does the media prefer STGW or GOTU?

In the previous week, Stagwell had 1 more articles in the media than Gaotu Techedu. MarketBeat recorded 4 mentions for Stagwell and 3 mentions for Gaotu Techedu. Gaotu Techedu's average media sentiment score of 0.51 beat Stagwell's score of 0.28 indicating that Gaotu Techedu is being referred to more favorably in the news media.

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

Which has more volatility & risk, STGW or GOTU?

Stagwell has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Gaotu Techedu has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500.

Do analysts rate STGW or GOTU?

Stagwell presently has a consensus price target of $8.06, indicating a potential upside of 17.77%. Gaotu Techedu has a consensus price target of $6.58, indicating a potential downside of 15.38%. Given Stagwell's stronger consensus rating and higher possible upside, equities research analysts plainly believe Stagwell is more favorable than Gaotu Techedu.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stagwell	0 Sell rating(s)	3 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.67
Gaotu Techedu	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.50

Summary

Stagwell beats Gaotu Techedu on 12 of the 18 factors compared between the two stocks.