Head-To-Head Contrast: Gaotu Techedu (NYSE:GOTU) & Oriental Land (OTCMKTS:OLCLY)

Oriental Land (OTCMKTS:OLCLY – Get Free Report) and Gaotu Techedu (NYSE:GOTU – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

48.4% of Gaotu Techedu shares are held by institutional investors. 44.9% of Gaotu Techedu shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Oriental Land and Gaotu Techedu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oriental Land 0 1 0 0 2.00
Gaotu Techedu 1 0 0 0 1.00

Profitability

This table compares Oriental Land and Gaotu Techedu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oriental Land 18.75% 12.35% 8.57%
Gaotu Techedu -5.00% -26.89% -5.73%

Risk and Volatility

Oriental Land has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Gaotu Techedu has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Valuation and Earnings

This table compares Oriental Land and Gaotu Techedu”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oriental Land $4.68 billion 6.36 $804.41 million $0.54 33.63
Gaotu Techedu $878.98 million 0.70 -$46.23 million ($0.21) -12.21

Oriental Land has higher revenue and earnings than Gaotu Techedu. Gaotu Techedu is trading at a lower price-to-earnings ratio than Oriental Land, indicating that it is currently the more affordable of the two stocks.

Summary

Oriental Land beats Gaotu Techedu on 9 of the 12 factors compared between the two stocks.

About Oriental Land

(Get Free Report)

Oriental Land Co., Ltd. operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The Theme Park segment operates and manages Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotel Business segment operates and manages Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel, as well as Tokyo Disney Resort Toy Story Hotel. The Other Business segment operates and manages Ikspiari, a shopping complex that includes shops and restaurants, and a cinema complex; and Disney Resort Line, a monorail connecting four stations within Tokyo Disney Resort. It is also involved in the land development. Oriental Land Co., Ltd. was incorporated in 1960 and is based in Urayasu, Japan.

About Gaotu Techedu

(Get Free Report)

Gaotu Techedu Inc., a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams. It also offers admission courses for admission tests and interviews, including national-post graduate entrance examination, civil service examinations, and others; foreign language courses; overseas study related services; and courses to prepare and pass certain language exams for study abroad, such as IELTS and TOEFL. In addition, the company designs and develops course outlines, interactive courseware, practice exercises, and lesson notes; publishes reference books comprising Chinese dictionary, dictionary of idioms, and past exam questions for the college entrance examination; and develops, expands, and upgrades education-centric digital products and solutions, as well as learning apps. Further, it offers books and digitalized auxiliary learning tools, such as smart devices and translation pens; and online tutoring services. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, China.

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