New Oriental vs Gaotu

New Oriental Education & Tech Group Inc and Gaotu Techedu Inc are presented for comparison. This page examines their business models, financial performance, and the market context in which they operate. The aim is to provide a neutral, accessible overview without favouring either company. Educational content, not financial advice.

New Oriental Education & Tech Group Inc and Gaotu Techedu Inc are presented for comparison. This page examines their business models, financial performance, and the market context in which they operat...

Comparison Snapshot

Key Financial Metrics

EDU

Metric

GOTU

$9.28B

Market Cap

$561.56M

17.34%

Potential Profit

92.37%

Buy

Analyst Rating

Buy

Investment Analysis

New Oriental

EDU

Pros

New Oriental achieved revenue growth of 13.6% year-on-year in 2025, reaching $4.90 billion, demonstrating strong top-line momentum.
The company reported a 20.07% increase in earnings to $371.72 million in 2025, showing improved profitability.
Analysts maintain a generally positive view with a consensus 'Buy' rating and forecast about 10% annualized growth through 2026.

Considerations

Recent earnings per share missed analyst expectations, signaling potential short-term execution challenges.
Although growing, the net margin remains moderate at around 7.36%, indicating limited operational leverage.
Forward price-to-earnings ratio of approximately 18.5 suggests the stock is priced for growth, potentially limiting upside if growth slows.

Gaotu

GOTU

Pros

Gaotu Techedu is a technology-driven education company operating in a fast-evolving digital learning sector in China.
The company’s NYSE listing provides access to international capital markets and investor visibility.
Gaotu's focus on technology could provide scalability and innovation advantages in the competitive education sector.

Considerations

Gaotu shows significantly negative returns on assets, equity, and invested capital, highlighting ongoing profitability and capital efficiency struggles.
The company operates in a highly regulated Chinese education sector, which has experienced volatile policy changes impacting peers.
Limited recent positive financial metrics or growth indicators create uncertainty around immediate financial strength and stability.

About The Companies

New Oriental (EDU)

New Oriental Education & Tech Group (EDU) is a China-based provider of private educational services, known for test preparation, K–12 tutoring, language training and online learning platforms. Listed as an ADR, it has diversified beyond traditional after-school tutoring into online courses, adult vocational training, overseas study services and early-years education. Investors should note the company's exposure to China-specific policy risk — major regulatory changes since 2021 reshaped the tutoring market and prompted strategic pivots. Growth drivers include rising digital adoption, international demand for language and test-prep services, and expansion into new education segments; however, revenues can be cyclical and sensitive to regulation, competition and macro conditions. With a market capitalisation around $10.3bn, EDU may offer recovery and transformation potential but also carries elevated volatility. This summary is for general educational purposes only and not personalised investment advice; always consider your own objectives and seek professional guidance.

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