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 $284.0M against $182.5M — 1.6× the size. Gaotu Techedu Inc. has negative trailing earnings, so its P/E is not meaningful; Franklin Covey Company trades at 89.2×. 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 89.22 n/m 12.09
P/S 0.69 0.52 0.80
P/B 4.21 3.29 1.39
Price to free cash flow 16.83 8.29 7.31
EV/EBITDA 8.52 n/m 6.36
EV/Sales 0.65 0.10 0.58
Earnings yield 1.12% (9.21%) 3.29%
Free cash flow yield 5.94% 12.06% 3.03%

Profitability

Metric FC GOTU Education & Training Services median
Gross margin 75.18% 67.54% 55.03%
Operating margin 2.45% (6.60%) 0.00%
Net margin 0.83% (4.97%) 1.77%
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% 5.84%
EPS growth (last fiscal year) (86.21%) 66.07% 14.71%
Revenue growth, 5-year CAGR 6.12% (4.25%) 4.24%
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 0.05
Current ratio 0.66 0.86 1.37
Net debt to EBITDA (1.65) 8.43 (0.04)

Dividend

Metric FC GOTU Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric FC GOTU Education & Training Services median
Market cap 182.51m 283.98m 59.54m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack