Gaotu Techedu Inc. (GOTU) vs KinderCare Learning Companies, Inc. (KLC)

Gaotu Techedu Inc. and KinderCare Learning Companies, Inc. are both Education & Training Services companies. Gaotu Techedu Inc. is the larger, with a market value of $304.0M against $260.7M — 1.2× the size. Gaotu Techedu Inc. grew revenue faster over the last twelve months: 28.8% against 1.79%. Gaotu Techedu Inc. has the higher net margin (−4.97% vs −17.2%) and the higher return on invested capital (0.00% vs −20.9%). Across the 18 metrics below, Gaotu Techedu Inc. leads on 12 and KinderCare Learning Companies, Inc. on 6.

Valuation

Metric GOTU KLC Education & Training Services median
P/E n/m n/m 11.19
P/S 0.56 0.09 0.92
P/B 3.55 0.54 1.63
Price to free cash flow 7.47 3.11 9.62
EV/EBITDA n/m n/m 7.02
EV/Sales 0.14 0.37 0.82
Earnings yield (8.54%) (187.74%) 3.17%
Free cash flow yield 13.39% 32.21% 2.30%

Profitability

Metric GOTU KLC Education & Training Services median
Gross margin 67.54% 19.17% 54.64%
Operating margin (6.60%) (14.89%) 0.00%
Net margin (4.97%) (17.23%) 3.29%
Free cash flow margin 0.00% 2.97% 0.00%
Return on equity (25.49%) (67.78%) 0.00%
Return on assets (5.51%) (13.10%) 0.00%
Return on invested capital 0.00% (20.89%) 0.00%

Growth

Metric GOTU KLC Education & Training Services median
Revenue growth (TTM) 28.79% 1.79% 6.97%
EPS growth (last fiscal year) 66.07% 1.04% —
Revenue growth, 5-year CAGR (4.25%) — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric GOTU KLC Education & Training Services median
Debt to equity 0.51 1.99 0.08
Current ratio 0.86 0.75 1.33
Net debt to EBITDA 8.43 7.22 (0.15)

Dividend

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

Size

Metric GOTU KLC Education & Training Services median
Market cap 303.99m 260.74m 68.93m

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