China Bilingual Technology & Education Group (OTCMKTS:CATG) & Gaotu Techedu (NYSE:GOTU) Financial Contrast

Gaotu Techedu (NYSE:GOTU) and China Bilingual Technology & Education Group (OTCMKTS:CATG) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gaotu Techedu and China Bilingual Technology & Education Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaotu Techedu	1	0	0	0	1.00
China Bilingual Technology & Education Group	0	0	0	0	0.00

Profitability

This table compares Gaotu Techedu and China Bilingual Technology & Education Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gaotu Techedu	-6.45%	-21.95%	-6.86%
China Bilingual Technology & Education Group	N/A	N/A	N/A

Insider and Institutional Ownership

48.4% of Gaotu Techedu shares are held by institutional investors. 44.9% of Gaotu Techedu shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Gaotu Techedu and China Bilingual Technology & Education Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaotu Techedu	$623.84 million	0.99	-$143.71 million	($0.21)	-11.64
China Bilingual Technology & Education Group	N/A	N/A	N/A	N/A	N/A

China Bilingual Technology & Education Group has lower revenue, but higher earnings than Gaotu Techedu.

Risk & Volatility

Gaotu Techedu has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, China Bilingual Technology & Education Group has a beta of -2.25, indicating that its share price is 325% less volatile than the S&P 500.

Summary

Gaotu Techedu beats China Bilingual Technology & Education Group on 5 of the 8 factors compared between the two stocks.

About Gaotu Techedu

Gaotu Techedu Inc., a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams. It also offers admission courses for admission tests and interviews, including national-post graduate entrance examination, civil service examinations, and others; foreign language courses; overseas study related services; and courses to prepare and pass certain language exams for study abroad, such as IELTS and TOEFL. In addition, the company designs and develops course outlines, interactive courseware, practice exercises, and lesson notes; publishes reference books comprising Chinese dictionary, dictionary of idioms, and past exam questions for the college entrance examination; and develops, expands, and upgrades education-centric digital products and solutions, as well as learning apps. Further, it offers books and digitalized auxiliary learning tools, such as smart devices and translation pens; and online tutoring services. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, China.

About China Bilingual Technology & Education Group

Capstone Technologies Group, Inc. intends to operate as a holding company. It engages in customer data platform market, and provides software design, development, and other services. The company was formerly known as China Bilingual Technology & Education Group Inc. and changed its name to Capstone Technologies Group, Inc. in April 2017. Capstone Technologies Group, Inc. is based in Charlotte, North Carolina.