Perdoceo Education vs Gaotu

Perdoceo Education and Gaotu are compared on this page, focusing on business models, financial performance, and market context in a neutral, accessible way. It presents how each company positions itself and the factors shaping their activities. Educational content, not financial advice.

Perdoceo Education and Gaotu are compared on this page, focusing on business models, financial performance, and market context in a neutral, accessible way. It presents how each company positions itse...

Comparison Snapshot

Key Financial Metrics

PRDO

Metric

GOTU

$2.03B

Market Cap

$561.56M

29.63%

Potential Profit

92.37%

Buy

Analyst Rating

Buy

Investment Analysis

Perdoceo Education

PRDO

Pros

Perdoceo Education reported strong Q3 2025 earnings, exceeding analyst expectations for both revenue and EPS.
The company achieved a 24.8% year-over-year revenue increase, supported by a 15.1% rise in student enrollments.
Perdoceo maintains high gross profit margins of over 81% and robust net income, reflecting operational efficiency.

Considerations

Recent share price volatility reflects sector-wide concerns, despite strong company fundamentals.
Future growth depends heavily on continued enrollment expansion and successful integration of recent acquisitions.
The company faces ongoing regulatory risks, particularly in the US education sector, which could impact operations.

Gaotu

GOTU

Pros

Gaotu Techedu is a leading technology-driven education provider in China, with a broad portfolio of online K-12 and professional courses.
The company has a large workforce and established presence in the Chinese education market, supporting scale and reach.
Gaotu's business model is focused on digital delivery, which offers flexibility and potential for cost efficiencies.

Considerations

Gaotu's stock has declined significantly over the past year, reflecting ongoing challenges in China's education sector.
The company is exposed to regulatory changes in China, which have previously disrupted the private tutoring industry.
Revenue and earnings visibility may be limited due to market volatility and policy uncertainty in its core market.

About The Companies

Perdoceo Education (PRDO)

Perdoceo Education Corp (PRDO) is a US-based, for‑profit post‑secondary education group operating online and campus programmes aimed at healthcare professionals and working adults. Its revenues primarily derive from tuition, course fees and associated services across brands such as Colorado Technical University and American InterContinental University. With a market capitalisation near $2.37 billion, Perdoceo has focused on digital delivery, cost discipline and programme optimisation to bolster enrolment and margins. Key drivers for investors include demand for career‑focused credentials, scalability of online offerings and operational efficiency. Important risks include regulatory scrutiny of the for‑profit education sector, exposure to federal student aid policies, variable enrolment trends and competitive pressure. Financial results can fluctuate with policy changes and student demand. This is general educational information, not personalised advice — values can rise or fall and past performance is not indicative of future results. Consider your own circumstances or consult a regulated financial adviser.

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?

Education in the Spotlight

This carefully selected group of stocks features companies that could benefit from McGraw Hill's upcoming $4.2 billion IPO. Our professional analysts have identified these educational publishers, digital platforms, and service providers as potential beneficiaries of renewed investor interest in the education sector.

Published: July 15, 2025

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Which Baskets Do They Appear In?

Education in the Spotlight

This carefully selected group of stocks features companies that could benefit from McGraw Hill's upcoming $4.2 billion IPO. Our professional analysts have identified these educational publishers, digital platforms, and service providers as potential beneficiaries of renewed investor interest in the education sector.

Published: July 15, 2025

Explore Basket

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