Gaotu Techedu Inc. (GOTU) vs Phoenix Education Partners, Inc. (PXED)

Gaotu Techedu Inc. and Phoenix Education Partners, Inc. are both Education & Training Services companies. Phoenix Education Partners, Inc. is the larger, with a market value of $864.4M against $334.0M — 2.6× the size. Gaotu Techedu Inc. has negative trailing earnings, so its P/E is not meaningful; Phoenix Education Partners, Inc. trades at 10.2×. Phoenix Education Partners, Inc. has the higher net margin (8.18% vs −4.97%) and the higher return on invested capital (47.4% vs 0.00%). Across the 17 metrics below, Phoenix Education Partners, Inc. leads on 14 and Gaotu Techedu Inc. on 3.

Valuation

Metric GOTU PXED Education & Training Services median
P/E n/m 10.23 13.22
P/S 0.61 0.84 0.99
P/B 3.81 2.60 1.62
Price to free cash flow 9.60 6.46 10.06
EV/EBITDA n/m 4.95 8.56
EV/Sales 0.18 0.66 0.78
Earnings yield (7.95%) 9.78% 3.17%
Free cash flow yield 10.42% 15.48% 2.81%

Profitability

Metric GOTU PXED Education & Training Services median
Gross margin 67.54% 100.00% 54.64%
Operating margin (6.60%) 11.16% 0.00%
Net margin (4.97%) 8.18% 2.98%
Free cash flow margin 0.00% 12.94% 0.00%
Return on equity (25.49%) 29.27% 0.00%
Return on assets (5.51%) 15.04% 0.00%
Return on invested capital 0.00% 47.37% 0.00%

Growth

Metric GOTU PXED Education & Training Services median
Revenue growth (TTM) 28.79% — 6.97%
EPS growth (last fiscal year) 66.07% 13.21% 15.68%
Revenue growth, 5-year CAGR (4.25%) — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric GOTU PXED Education & Training Services median
Debt to equity 0.51 0.17 0.05
Current ratio 0.86 1.92 1.33
Net debt to EBITDA 8.43 (0.61) (0.15)

Dividend

Metric GOTU PXED Education & Training Services median
Dividend yield — 2.67% 1.84%
Payout ratio — 0.29 0.23

Size

Metric GOTU PXED Education & Training Services median
Market cap 334.02m 864.42m 68.84m

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