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GOTU vs KO

GOTU
Gaotu Techedu Inc.
BEARISH
Price
$1.89
Market Cap
$450.7M
Sector
Consumer Defensive
AI Confidence
85%
KO
The Coca-Cola Company
BEARISH
Price
$75.44
Market Cap
$324.71B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
GOTU
--
KO
24.82
Forward P/E
GOTU
12.19
KO
21.85
P/B Ratio
GOTU
2.47
KO
10.09
P/S Ratio
GOTU
0.07
KO
6.77
EV/EBITDA
GOTU
5.73
KO
22.31

Profitability

Gross Margin
GOTU
67.44%
KO
61.63%
Operating Margin
GOTU
-7.0%
KO
24.66%
Profit Margin
GOTU
-5.26%
KO
27.34%
ROE
GOTU
-20.29%
KO
43.32%
ROA
GOTU
-5.23%
KO
9.15%

Growth

Revenue Growth
GOTU
21.4%
KO
2.4%
Earnings Growth
GOTU
--
KO
3.6%

Financial Health

Debt/Equity
GOTU
0.61
KO
1.4
Current Ratio
GOTU
0.94
KO
1.46
Quick Ratio
GOTU
0.83
KO
0.89

Dividends

Dividend Yield
GOTU
--
KO
2.73%
Payout Ratio
GOTU
0.0%
KO
67.11%

AI Verdict

GOTU BEARISH

The deterministic health baseline is critically weak, highlighted by a Piotroski F-Score of 2/9 and a bearish technical trend of 0/100. While the company shows strong top-line revenue growth (21.4% YoY) and a very low Price/Sales ratio (0.07), these are overshadowed by negative ROE (-20.29%) and a current ratio below 1.0 (0.94), indicating liquidity risks. Despite analyst target prices suggesting significant upside, the fundamental decay and long-term price collapse (-94.7% over 5 years) suggest a high-risk speculative profile rather than a value investment.

Strengths
Strong revenue growth of 21.40% YoY
Extremely low Price/Sales ratio (0.07) suggesting deep undervaluation of sales
High gross margins (67.43%)
Risks
Critically low Piotroski F-Score (2/9) indicating poor financial health
Liquidity risk with a current ratio of 0.94 (below 1.0)
Negative profitability metrics (ROE -20.29%, Profit Margin -5.26%)
KO BEARISH

KO exhibits a significant disconnect between its current market price ($75.44) and its deterministic value markers, with a Piotroski F-Score of 3/9 indicating weak financial health trends. The stock trades at a massive premium to both its Graham Number ($22.43) and Intrinsic Value ($37.08), while a PEG ratio of 3.95 suggests severe overvaluation relative to its stagnant growth. Despite strong historical earnings beats and high ROE, the combination of bearish insider selling and a 0/100 technical trend signals a lack of immediate catalyst for upside.

Strengths
Exceptional Return on Equity (ROE) of 43.32%
Strong profit margins (27.34%) and gross margins (61.63%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Weak operational health trend as indicated by a Piotroski F-Score of 3/9
Stagnant revenue growth (2.40% YoY) failing to justify the P/E multiple

Compare Another Pair

GOTU vs KO: Head-to-Head Comparison

This page compares Gaotu Techedu Inc. (GOTU) and The Coca-Cola Company (KO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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