Laureate Education vs Gaotu

This page compares Laureate Education Inc and Gaotu Techedu Inc to illuminate their business models, financial performance, and market context in a neutral, accessible way. It highlights the similarities and differences between these organisations as players in the education sector. Educational content, not financial advice.

This page compares Laureate Education Inc and Gaotu Techedu Inc to illuminate their business models, financial performance, and market context in a neutral, accessible way. It highlights the similarit...

Comparison Snapshot

Key Financial Metrics

LAUR

Metric

GOTU

$5.13B

Market Cap

$561.56M

3.33%

Potential Profit

92.37%

Buy

Analyst Rating

Buy

Investment Analysis

Laureate Education

LAUR

Pros

Laureate Education reported a 5.55% revenue increase in 2024, reaching $1.57 billion, indicating steady top-line growth.
The company improved profitability with a 175.56% increase in earnings to $296.47 million in 2024, reflecting enhanced operational efficiency.
Laureate offers a diversified portfolio of higher education programs across business, health sciences, and engineering through campus-based, online, and hybrid models.

Considerations

Despite recent earnings growth, the forward price-to-earnings (PE) ratio of approximately 14 suggests moderate valuation compression risk.
The company operates primarily in a competitive and regulated higher education sector, which may limit pricing power and growth.
Laureate does not currently pay dividends, which may reduce appeal for income-focused investors seeking yield.

Gaotu

GOTU

Pros

Gaotu Techedu operates a technology-driven online education platform focusing on large-class format K-12 after-school tutoring in mainland China.
The company maintains a strong gross margin of over 67%, reflecting efficient cost management relative to revenue.
Gaotu’s recent market forecasts by some analysts suggest potential for significant stock price appreciation over the next year.

Considerations

Gaotu reported ongoing net losses, with a negative earnings per share of -2.87 and poor fundamental ratings, highlighting profitability challenges.
The stock exhibits high price volatility and a bearish short-term technical sentiment, raising risks related to market sentiment and execution.
Its entire business and assets are concentrated in mainland China, exposing it to regulatory and geopolitical risks impacting the Chinese education sector.

About The Companies

Laureate Education (LAUR)

Laureate Education Inc (LAUR) is a publicly listed provider of higher-education services, operating a network of universities and degree programmes across multiple countries. The company generates revenue from student tuition, online and on-campus courses, and strategic partnerships to expand access to professional and undergraduate programmes. With a market capitalisation of around $4.35 billion, investors typically watch enrolment trends, margins on online versus campus delivery, and the regulatory environment in key markets. Important considerations include exposure to currency and political risk, shifting student preferences, and reputational or compliance matters that can influence admissions and profitability. Financial results can be cyclical and sensitive to demographic changes, government policy and competition from alternative education providers. This summary is for general educational use only and is not personal financial advice; investors should review the company's filings and consider their own circumstances or consult a regulated adviser before making investment decisions.

Gaotu (GOTU)

Gaotu Techedu Inc. is a technology-focused education company that aims to facilitate lifelong learning. It uses artificial intelligence (AI) to create and deliver a range of educational services and products for learners of all ages, from pre-schoolers to adults. The company's business is split into two main areas. The first is learning services, which includes traditional tutoring, non-academic courses, and professional development for adults. The second is educational content and digital products, where it develops and sells books and smart learning tools like AI-powered reading apps and translation pens. By integrating technology into its offerings, Gaotu seeks to provide modern, accessible learning solutions. As with any investment, it's important to remember that a company's value can go down as well as up, and past success is not a guide to future performance.

Which Baskets Do They Appear In?

Knowledge & Skills Economy

Tap into the growing market for lifelong learning and professional development. These carefully selected companies are at the forefront of educational innovation, from digital platforms to specialized training services. Our analysts have identified the leaders in this expanding sector.

Published: June 17, 2025

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Knowledge Economy Builders

Discover companies shaping the future of education and professional development. These carefully selected stocks represent institutions and platforms creating the intellectual capital essential for tomorrow's workforce, curated by our investment experts.

Published: June 17, 2025

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Which Baskets Do They Appear In?

Knowledge & Skills Economy

Tap into the growing market for lifelong learning and professional development. These carefully selected companies are at the forefront of educational innovation, from digital platforms to specialized training services. Our analysts have identified the leaders in this expanding sector.

Published: June 17, 2025

Explore Basket

Knowledge Economy Builders

Discover companies shaping the future of education and professional development. These carefully selected stocks represent institutions and platforms creating the intellectual capital essential for tomorrow's workforce, curated by our investment experts.

Published: June 17, 2025

Explore Basket

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Comparison Snapshot