Afya Limited (AFYA) vs Gaotu Techedu Inc. (GOTU)

Afya Limited and Gaotu Techedu Inc. are both Education & Training Services companies. Afya Limited is the larger, with a market value of $928.2M against $284.0M — 3.3× the size. Gaotu Techedu Inc. has negative trailing earnings, so its P/E is not meaningful; Afya Limited trades at 6.2×. Gaotu Techedu Inc. grew revenue faster over the last twelve months: 28.8% against 17.4%. Afya Limited has the higher net margin (20.6% vs −4.97%) and the higher return on invested capital (12.5% vs 0.00%). Across the 20 metrics below, Afya Limited leads on 15 and Gaotu Techedu Inc. on 5.

Valuation

Metric AFYA GOTU Education & Training Services median
P/E 6.15 n/m 12.09
P/S 1.24 0.52 0.80
P/B 0.92 3.29 1.39
Price to free cash flow 3.72 8.29 7.31
EV/EBITDA 3.61 n/m 6.36
EV/Sales 1.53 0.10 0.58
Earnings yield 16.26% (9.21%) 3.29%
Free cash flow yield 26.87% 12.06% 3.03%

Profitability

Metric AFYA GOTU Education & Training Services median
Gross margin 64.09% 67.54% 55.03%
Operating margin 32.70% (6.60%) 0.00%
Net margin 20.58% (4.97%) 1.77%
Free cash flow margin 33.43% 0.00% 0.00%
Return on equity 16.63% (25.49%) 0.00%
Return on assets 8.58% (5.51%) 0.00%
Return on invested capital 12.54% 0.00% 0.00%

Growth

Metric AFYA GOTU Education & Training Services median
Revenue growth (TTM) 17.43% 28.79% 5.84%
EPS growth (last fiscal year) 15.50% 66.07% 14.71%
Revenue growth, 5-year CAGR 23.23% (4.25%) 4.24%
Net income growth, 5-year CAGR 18.92% 0.00% 0.00%

Health

Metric AFYA GOTU Education & Training Services median
Debt to equity 0.42 0.51 0.05
Current ratio 2.20 0.86 1.37
Net debt to EBITDA 0.59 8.43 (0.04)

Dividend

Metric AFYA GOTU Education & Training Services median
Dividend yield 6.47% — 2.64%
Payout ratio 0.40 — 0.26

Size

Metric AFYA GOTU Education & Training Services median
Market cap 928.24m 283.98m 59.54m

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