Gaotu Techedu (NYSE:GOTU – Get Free Report) and XWELL (NASDAQ:XWEL – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Profitability
This table compares Gaotu Techedu and XWELL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gaotu Techedu | -5.00% | -26.89% | -5.73% |
| XWELL | -82.90% | -1,091.48% | -119.50% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Gaotu Techedu and XWELL, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gaotu Techedu | 1 | 0 | 0 | 0 | 1.00 |
| XWELL | 1 | 0 | 0 | 0 | 1.00 |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gaotu Techedu | $878.98 million | 0.69 | -$46.23 million | ($0.21) | -12.12 |
| XWELL | $29.21 million | 0.24 | -$16.99 million | ($5.32) | -0.16 |
XWELL has lower revenue, but higher earnings than Gaotu Techedu. Gaotu Techedu is trading at a lower price-to-earnings ratio than XWELL, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
48.4% of Gaotu Techedu shares are owned by institutional investors. Comparatively, 8.7% of XWELL shares are owned by institutional investors. 44.9% of Gaotu Techedu shares are owned by company insiders. Comparatively, 13.9% of XWELL shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Gaotu Techedu has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, XWELL has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Summary
Gaotu Techedu beats XWELL on 8 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 XWELL
XWELL, Inc. provides health and wellness services in airport and off airport marketplaces in the United States and internationally. It operates in four segments: XpresSpa, XpresTest, Naples Wax Center, and Treat. The XpresSpa segment traveler's spa services, including massage, nail, and skin care services, as well as spa and travel products. The XpresTest segment offers diagnostic COVID-19 tests at XpresCheck Wellness Centers in airports, to airport employees and to the traveling public but has transitioned to the CDC's bio-surveillance program; and provides marketing support through HyperPointe business to various health and health-related channels. The Napple Wax Center segment offers skincare and cometic products, as well as face and body waxing services. The Treat segment provides access to wellness services for travelers at on-site centers, consisting of self-guided yoga, meditation, and low impact weight exercises programs. The company offers its services through stores, kiosks, and online. The company was formerly known as XpresSpa Group, Inc. and changed its name to XWELL, Inc. in October 2022. XWELL, Inc. is based in New York, New York.
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