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 $757.5M against $304.0M — 2.5× the size. Gaotu Techedu Inc. has negative trailing earnings, so its P/E is not meaningful; Lincoln Educational Services Corporation trades at 30.8×. 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 30.77 11.19
P/S 0.56 1.23 0.92
P/B 3.55 3.47 1.63
Price to free cash flow 7.47 28.67 9.62
EV/EBITDA n/m 11.59 7.02
EV/Sales 0.14 1.25 0.82
Earnings yield (8.54%) 3.25% 3.17%
Free cash flow yield 13.39% 3.49% 2.30%

Profitability

Metric GOTU LINC Education & Training Services median
Gross margin 67.54% 59.84% 54.64%
Operating margin (6.60%) 5.91% 0.00%
Net margin (4.97%) 3.99% 3.29%
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% 6.97%
EPS growth (last fiscal year) 66.07% 100.00% —
Revenue growth, 5-year CAGR (4.25%) 12.07% 4.27%
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 0.08
Current ratio 0.86 0.96 1.33
Net debt to EBITDA 8.43 0.04 (0.15)

Dividend

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

Size

Metric GOTU LINC Education & Training Services median
Market cap 303.99m 757.51m 68.93m

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