Franklin Covey Company (FC) vs Gaotu Techedu Inc. (GOTU)

Franklin Covey Company and Gaotu Techedu Inc. are both Education & Training Services companies. Gaotu Techedu Inc. is the larger, with a market value of $304.0M against $195.1M — 1.6× the size. Gaotu Techedu Inc. has negative trailing earnings, so its P/E is not meaningful; Franklin Covey Company trades at 96.2×. Gaotu Techedu Inc. grew revenue faster over the last twelve months: 28.8% against −6.14%. Franklin Covey Company has the higher net margin (0.83% vs −4.97%) and the higher return on invested capital (13.0% vs 0.00%). Across the 19 metrics below, Franklin Covey Company leads on 11 and Gaotu Techedu Inc. on 8.

Valuation

Metric FC GOTU Education & Training Services median
P/E 96.17 n/m 11.19
P/S 0.74 0.56 0.92
P/B 4.54 3.55 1.63
Price to free cash flow 18.14 7.47 9.62
EV/EBITDA 9.22 n/m 7.02
EV/Sales 0.71 0.14 0.82
Earnings yield 1.04% (8.54%) 3.17%
Free cash flow yield 5.51% 13.39% 2.30%

Profitability

Metric FC GOTU Education & Training Services median
Gross margin 75.18% 67.54% 54.64%
Operating margin 2.45% (6.60%) 0.00%
Net margin 0.83% (4.97%) 3.29%
Free cash flow margin 4.09% 0.00% 0.00%
Return on equity 4.03% (25.49%) 0.00%
Return on assets 1.05% (5.51%) 0.00%
Return on invested capital 12.98% 0.00% 0.00%

Growth

Metric FC GOTU Education & Training Services median
Revenue growth (TTM) (6.14%) 28.79% 6.97%
EPS growth (last fiscal year) (86.21%) 66.07% —
Revenue growth, 5-year CAGR 6.12% (4.25%) 4.27%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric FC GOTU Education & Training Services median
Debt to equity 0.00 0.51 0.08
Current ratio 0.66 0.86 1.33
Net debt to EBITDA (1.65) 8.43 (0.15)

Dividend

Metric FC GOTU Education & Training Services median
Dividend yield — — 1.13%
Payout ratio 0.00 0.00 0.00

Size

Metric FC GOTU Education & Training Services median
Market cap 195.05m 303.99m 68.93m

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