Gaotu Techedu (NYSE:GOTU – Get Free Report) and Kuke Music (NYSE:KUKE – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Risk and Volatility
Gaotu Techedu has a beta of -0.59, indicating that its stock price is 159% less volatile than the S&P 500. Comparatively, Kuke Music has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
This table compares Gaotu Techedu and Kuke Music’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
18.2% of Gaotu Techedu shares are owned by institutional investors. Comparatively, 0.1% of Kuke Music shares are owned by institutional investors. 44.9% of Gaotu Techedu shares are owned by company insiders. Comparatively, 42.2% of Kuke Music shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Gaotu Techedu and Kuke Music’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gaotu Techedu||$362.21 million||2.49||$1.91 million||$0.04||86.90|
|Kuke Music||$17.11 million||0.66||-$132.88 million||($0.21)||-2.52|
Gaotu Techedu has higher revenue and earnings than Kuke Music. Kuke Music is trading at a lower price-to-earnings ratio than Gaotu Techedu, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Gaotu Techedu and Kuke Music, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gaotu Techedu currently has a consensus target price of $1.30, suggesting a potential downside of 62.59%. Given Gaotu Techedu’s higher possible upside, equities research analysts plainly believe Gaotu Techedu is more favorable than Kuke Music.
Gaotu Techedu beats Kuke Music on 12 of the 13 factors compared between the two stocks.
About Gaotu Techedu
(Get Free Report)
Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People’s Republic of China. The company provides foreign language courses comprising English and Japanese, as well as test preparation courses for students taking language certification exams; and professional courses primarily for college students and adults preparing for professional qualification exams, such teacher’s qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, Certified Tax Agent designation, securities qualification exams, and other exams. It also offers admission courses for admission tests and interviews, including national graduate entrance examination, civil service examinations, and others; and consulting services. In addition, the company provides online IT education courses, such as computer programming, as well as online courses on professional computer coding; career development courses, including memory enhancement courses, leadership and management training courses, and others; and courses to prepare and pass certain language exams for study abroad, such as IELTS and TOEFL. Further, it provides non-academic tutoring and personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and designs and develops course outlines, interactive courseware, practice exercises, and lesson notes, as well as reference books, such as Chinese dictionary, dictionary of idioms, and past exam questions of college entrance examination. Additionally, the company offers smart devices; multi-function translation pen, an electronic translation pen with Chinese/English translation capabilities; and learning apps. 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, the People’s Republic of China.
About Kuke Music
(Get Free Report)
Kuke Music Holding Limited, through its subsidiaries, provides classical music licensing, subscription, and education services in China. It operates through two segments: Subscription, Licensing and Smart Education Business; and Music Events and Performances Business. The Subscription, Licensing and Smart Education Business segment distributes commercial copyrights and offers music education solutions. The Music Events Business segment provides music festival events and music performance services; and sells musical instruments, including conch smart speakers. The company licenses its music content primarily to online music entertainment platforms, digital music service providers, and commercial enterprises, as well as film and TV production companies, airlines, and smart hardware companies. It has institutional subscribers, including universities and music conservatories, as well as public libraries. Kuke Music Holding Limited was founded in 2002 and is headquartered in Beijing, China.
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