Gaotu Techedu Inc. (GOTU) vs Lincoln Educational Services Corporation (LINC)

Gaotu Techedu Inc. and Lincoln Educational Services Corporation are both Education & Training Services companies. Lincoln Educational Services Corporation is the larger, with a market value of $556.7M against $284.0M — 2.0× the size. Gaotu Techedu Inc. has negative trailing earnings, so its P/E is not meaningful; Lincoln Educational Services Corporation trades at 24.0×. Gaotu Techedu Inc. grew revenue faster over the last twelve months: 28.8% against 22.0%. Lincoln Educational Services Corporation has the higher net margin (3.99% vs −4.97%) and the higher return on invested capital (9.83% vs 0.00%). Across the 20 metrics below, Lincoln Educational Services Corporation leads on 13 and Gaotu Techedu Inc. on 7.

Valuation

Metric GOTU LINC Education & Training Services median
P/E n/m 24.03 12.09
P/S 0.52 0.96 0.80
P/B 3.29 2.71 1.39
Price to free cash flow 8.29 22.39 7.31
EV/EBITDA n/m 9.10 6.36
EV/Sales 0.10 0.98 0.58
Earnings yield (9.21%) 4.16% 3.29%
Free cash flow yield 12.06% 4.47% 3.03%

Profitability

Metric GOTU LINC Education & Training Services median
Gross margin 67.54% 59.84% 55.03%
Operating margin (6.60%) 5.91% 0.00%
Net margin (4.97%) 3.99% 1.77%
Free cash flow margin 0.00% 4.29% 0.00%
Return on equity (25.49%) 11.90% 0.00%
Return on assets (5.51%) 4.67% 0.00%
Return on invested capital 0.00% 9.83% 0.00%

Growth

Metric GOTU LINC Education & Training Services median
Revenue growth (TTM) 28.79% 22.02% 5.84%
EPS growth (last fiscal year) 66.07% 100.00% 14.71%
Revenue growth, 5-year CAGR (4.25%) 12.07% 4.24%
Net income growth, 5-year CAGR 0.00% (15.78%) 0.00%

Health

Metric GOTU LINC Education & Training Services median
Debt to equity 0.51 0.28 0.05
Current ratio 0.86 0.96 1.37
Net debt to EBITDA 8.43 0.04 (0.04)

Dividend

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

Size

Metric GOTU LINC Education & Training Services median
Market cap 283.98m 556.71m 59.54m

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