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GOTU vs PG

GOTU
Gaotu Techedu Inc.
BEARISH
Price
$1.89
Market Cap
$450.7M
Sector
Consumer Defensive
AI Confidence
85%
PG
The Procter & Gamble Company
BEARISH
Price
$145.71
Market Cap
$340.49B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
GOTU
--
PG
21.59
Forward P/E
GOTU
12.19
PG
20.23
P/B Ratio
GOTU
2.47
PG
6.48
P/S Ratio
GOTU
0.07
PG
3.99
EV/EBITDA
GOTU
5.73
PG
14.76

Profitability

Gross Margin
GOTU
67.44%
PG
51.19%
Operating Margin
GOTU
-7.0%
PG
26.3%
Profit Margin
GOTU
-5.26%
PG
19.3%
ROE
GOTU
-20.29%
PG
31.56%
ROA
GOTU
-5.23%
PG
10.9%

Growth

Revenue Growth
GOTU
21.4%
PG
1.5%
Earnings Growth
GOTU
--
PG
-5.4%

Financial Health

Debt/Equity
GOTU
0.61
PG
0.69
Current Ratio
GOTU
0.94
PG
0.72
Quick Ratio
GOTU
0.83
PG
0.47

Dividends

Dividend Yield
GOTU
--
PG
2.92%
Payout Ratio
GOTU
0.0%
PG
61.88%

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%)
PG BEARISH

PG exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but it is severely overvalued relative to its deterministic baselines. The current price of $145.71 represents a massive premium over the Graham Number ($58.45) and Intrinsic Value ($47.25), while a PEG ratio of 3.92 indicates the valuation is disconnected from its stagnant growth. Negative earnings growth (-5.40% YoY) combined with bearish insider activity and a 0/100 technical trend suggests significant downside risk despite the company's operational efficiency.

Strengths
Exceptional Return on Equity (ROE) of 31.56%
Strong gross margins (51.19%) and operating margins (26.30%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Extreme valuation premium over Graham and Intrinsic value estimates
Negative earnings growth (-5.40% YoY and -6.70% Q/Q)
Weak liquidity ratios with a Current Ratio of 0.72 and Quick Ratio of 0.47

Compare Another Pair

GOTU vs PG: Head-to-Head Comparison

This page compares Gaotu Techedu Inc. (GOTU) and The Procter & Gamble Company (PG) 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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