Analyzing JIADE (NASDAQ:JDZG) & Gaotu Techedu (NYSE:GOTU)

Gaotu Techedu (NYSE:GOTU) and JIADE (NASDAQ:JDZG) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Valuation & Earnings

This table compares Gaotu Techedu and JIADE”s 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
JIADE	$15.57 million	1.73	N/A	N/A	N/A

JIADE has lower revenue, but higher earnings than Gaotu Techedu.

Profitability

This table compares Gaotu Techedu and JIADE’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%
JIADE	N/A	N/A	N/A

Institutional and Insider Ownership

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gaotu Techedu and JIADE, as provided by MarketBeat.com.

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

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

Summary

Gaotu Techedu beats JIADE on 5 of the 9 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 JIADE

JIADE LIMITED specializes in providing one-stop comprehensive education supporting services to adult education institutions, through a wide spectrum of software platform and auxiliary solutions. The Company’s services are primarily offered through the Kebiao Technology Educational Administration Platform. JIADE LIMITED is based in Chengdu, China.