Contrasting Gaotu Techedu (NYSE:GOTU) and Mynd.ai (OTCMKTS:MYND)

Gaotu Techedu (NYSE:GOTU) and Mynd.ai (OTCMKTS:MYND) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Insider and Institutional Ownership

48.4% of Gaotu Techedu shares are held by institutional investors. Comparatively, 64.6% of Mynd.ai shares are held by institutional investors. 44.9% of Gaotu Techedu shares are held by company insiders. Comparatively, 36.9% of Mynd.ai shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Gaotu Techedu and Mynd.ai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaotu Techedu	1	2	1	0	2.00
Mynd.ai	0	0	0	0	N/A

Gaotu Techedu presently has a consensus target price of $7.23, suggesting a potential upside of 123.49%. Given Gaotu Techedu’s higher possible upside, research analysts clearly believe Gaotu Techedu is more favorable than Mynd.ai.

Risk and Volatility

Gaotu Techedu has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500. Comparatively, Mynd.ai has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gaotu Techedu and Mynd.ai”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaotu Techedu	$3.51 billion	0.24	-$1.03 million	($0.08)	-40.44
Mynd.ai	$357.05 million	0.17	-$37.86 million	N/A	N/A

Gaotu Techedu has higher revenue and earnings than Mynd.ai.

Profitability

This table compares Gaotu Techedu and Mynd.ai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gaotu Techedu	-17.63%	-20.26%	-11.51%
Mynd.ai	N/A	N/A	N/A

Summary

Gaotu Techedu beats Mynd.ai on 6 of the 11 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 Mynd.ai

Mynd.ai, Inc. operates in interactive technology offering hardware and software solutions. The company's solutions help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Its interactive displays and software are available in approximately 1 million learning and training spaces across 126 countries. The company's distribution network of approximately 4,000 reseller partners and its dedicated sales and support teams worldwide enable to deliver the service to its customers. The company was formerly known as Gravitas Education Holdings, Inc. and changed its name to Mynd.ai, Inc. in December 2023. Mynd.ai, Inc. was founded in 1998 and is based in Beijing, China.