GSX Techedu (GSX) Competitors

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

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

34.8% of GSX Techedu shares are held by institutional investors. Comparatively, 48.4% of Gaotu Techedu shares are held by institutional investors. 4.8% of GSX Techedu 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

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%

Does the MarketBeat Community favor 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 prefer GSX or GOTU?

In the previous week, Gaotu Techedu had 3 more articles in the media than GSX Techedu. MarketBeat recorded 3 mentions for Gaotu Techedu and 0 mentions for GSX Techedu. Gaotu Techedu's average media sentiment score of 0.51 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

Which has preferable 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	6.27	$32.56M	$0.13	61.46
Gaotu Techedu	$2.96B	0.70	-$1.03M	-$0.01	-799.00

Do analysts prefer GSX or GOTU?

Gaotu Techedu has a consensus target price of $6.58, suggesting a potential downside of 17.71%. Given Gaotu Techedu's higher possible upside, analysts plainly 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 more risk and volatility, GSX or GOTU?

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

Summary

Gaotu Techedu beats GSX Techedu on 11 of the 17 factors compared between the two stocks.