GSX Techedu (GOTU) & Its Rivals Critical Review

GSX Techedu (NYSE: GOTU) is one of 68 public companies in the “Educational services” industry, but how does it contrast to its rivals? We will compare GSX Techedu to similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, profitability, institutional ownership and risk.

Institutional & Insider Ownership

40.2% of GSX Techedu shares are owned by institutional investors. Comparatively, 49.2% of shares of all “Educational services” companies are owned by institutional investors. 19.9% of shares of all “Educational services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for GSX Techedu and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 0 2 0 0 2.00
GSX Techedu Competitors 295 1096 1391 38 2.42

GSX Techedu presently has a consensus target price of $24.75, indicating a potential upside of 53.35%. As a group, “Educational services” companies have a potential upside of 60.04%. Given GSX Techedu’s rivals stronger consensus rating and higher probable upside, analysts clearly believe GSX Techedu has less favorable growth aspects than its rivals.

Profitability

This table compares GSX Techedu and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSX Techedu -38.72% -96.40% -42.05%
GSX Techedu Competitors 603.98% -13.24% 5.07%

Valuation and Earnings

This table compares GSX Techedu and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
GSX Techedu $1.09 billion -$32.72 million -18.13
GSX Techedu Competitors $447.27 million -$3.31 million 27.62

GSX Techedu has higher revenue, but lower earnings than its rivals. GSX Techedu is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

GSX Techedu has a beta of -1.19, meaning that its share price is 219% less volatile than the S&P 500. Comparatively, GSX Techedu’s rivals have a beta of 0.44, meaning that their average share price is 56% less volatile than the S&P 500.

Summary

GSX Techedu rivals beat GSX Techedu on 12 of the 13 factors compared.

About GSX Techedu

GSX Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. Its K-12 after-school tutoring courses cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides foreign language courses comprising English and Japanese, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher's qualification, the Chartered Financial Analyst designation, securities qualification exams, and other exams. In addition, it offers admission courses for admission tests, including national graduate entrance examination, civil service examinations, and others. Further, the company provides other courses, including offline business consulting courses to enhance management skills for principals and other officers of private education institutions; and operates Weishi, an interactive learning platform on WeChat for instructors and students. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

Receive News & Ratings for GSX Techedu Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GSX Techedu and related companies with MarketBeat.com's FREE daily email newsletter.