Which Is a Better Investment, Gaotu Techedu Inc (ADR) or Laureate Education Inc Stock?

By AAII Staff
August 02, 2026
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Sifting through countless of stocks in the Diversified Consumer Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Laureate Education, Inc. or Gaotu Techedu Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Laureate Education, Inc. and Gaotu Techedu Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Laureate Education, Inc. and Gaotu Techedu Inc.

Laureate Education, Inc., together with its subsidiaries, offers higher education programs and services to students through a portfolio of higher education institutions in Mexico, Peru, and the United States. The company offers a range of undergraduate, graduate, and specialized degree programs in the areas of medicine and health sciences, engineering and information technology, and business and management through campus-based, online, and hybrid programs. It also operates universities and technical-vocational institutions, as well as provides high school education services. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.

Gaotu Techedu Inc., a data-driven education company, provides learning services, educational content, and digitalized learning products in Mainland China. Its learning services include traditional learning services that cover academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography and political science; and non-academic tutoring services, including adolescent development, Cambridge English, international competitions and international examinations. It also offers college student and adult education services, comprising admission courses for entrance exams and interviews for postgraduate programs and civil service exams; exam preparation courses, such as IELTS and TOEFL; consulting services for those pursuing studies abroad, as well as English courses for improving language skills which includes grammar, vocabulary, and speaking; and professional courses for qualification exams, such as teacher certification. In addition, the company offers educational content products, including course outlines, courseware, practice exercises and lesson notes, and reference books, such as Chinese dictionaries and exam question compilations for the college entrance exam; and digitalized learning products, including reading apps for young learners, and AI-based writing assessment tools that offer instant feedback, as well as learning pen and tablet devices. It provides its learning offerings to learners across various age groups from primary school students to adults through online and offline courses, and AI-powered applications. 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.

Latest Diversified Consumer Services and Laureate Education, Inc., Gaotu Techedu Inc. Stock News

As of July 31, 2026, Laureate Education, Inc. had a $5.3 billion market capitalization, compared to the Diversified Consumer Services median of $105.4 million. Laureate Education, Inc.’s stock is up 13.8% in 2026, up 3.5% in the previous five trading days and up 67.81% in the past year.

Currently, Laureate Education, Inc.’s price-earnings ratio is 17.2. Laureate Education, Inc.’s trailing 12-month revenue is $1.8 billion with a 17.6% net profit margin. Year-over-year quarterly sales growth most recently was 17.5%. Analysts expect adjusted earnings to reach $2.090 per share for the current fiscal year. Laureate Education, Inc. does not currently pay a dividend.

As of July 31, 2026, Gaotu Techedu Inc. had a $433.2 million market cap, putting it in the 36th percentile of all stocks. Gaotu Techedu Inc.’s stock is down 21.6% in 2026, up 16.7% in the previous five trading days and down 47.55% in the past year.

Currently, Gaotu Techedu Inc. does not have a price-earnings ratio. Gaotu Techedu Inc.’s trailing 12-month revenue is $919.7 million with a -6.5% net profit margin. Year-over-year quarterly sales growth most recently was 28.8%. Analysts expect adjusted earnings to reach $0.023 per share for the current fiscal year. Gaotu Techedu Inc. does not currently pay a dividend.

How We Compare Laureate Education, Inc. and Gaotu Techedu Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Laureate Education, Inc. and Gaotu Techedu Inc.’s stock grades to see how they measure up against one another.

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Laureate Education, Inc. and Gaotu Techedu Inc. Growth Grades

Company Ticker Growth
Laureate Education, Inc. LAUR C
Gaotu Techedu Inc. GOTU F

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Laureate Education, Inc. has a Growth Score of 59, which is Average. Gaotu Techedu Inc. has a Growth Score of 13, which is Very Weak.

The Growth Stock Winner: No Clear Winner

Neither Laureate Education, Inc. or Gaotu Techedu Inc. has a high enough Growth Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Laureate Education, Inc. or Gaotu Techedu Inc. is the better investment when it comes to sustainable growth.

Laureate Education, Inc. and Gaotu Techedu Inc.’s Quality Grades

Company Ticker Quality
Laureate Education, Inc. LAUR A
Gaotu Techedu Inc. GOTU D

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Laureate Education, Inc. has a Quality Score of 83, which is Very Strong. Gaotu Techedu Inc. has a Quality Score of 37, which is Weak.

The Quality Grade Winner: Laureate Education, Inc.

As you can clearly see from the Quality Grade breakdown above, Laureate Education, Inc. has a better overall quality grade than Gaotu Techedu Inc.. For investors who are looking for companies with higher quality than others in the same industry, Laureate Education, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Laureate Education, Inc. and Gaotu Techedu Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Laureate Education, Inc. LAUR C
Gaotu Techedu Inc. GOTU F

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Laureate Education, Inc. has a Earnings Estimate Score of 49, which is Neutral. Gaotu Techedu Inc. has a Earnings Estimate Score of 19, which is Very Negative.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Laureate Education, Inc. or Gaotu Techedu Inc. has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Laureate Education, Inc. or Gaotu Techedu Inc. is the better investment when it comes to estimate revisions.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Laureate Education, Inc. and Gaotu Techedu Inc. Grades

In addition to Estimate Revisions, Growth and Quality, A+ Investor also provides grades for Value and Momentum.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Laureate Education, Inc. and Gaotu Techedu Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Laureate Education, Inc. or Gaotu Techedu Inc. Stock?

Overall, Laureate Education, Inc. stock has a Growth Score of 59, Estimate Revisions Score of 49 and Quality Score of 83.

Gaotu Techedu Inc. stock has a Growth Score of 13, Estimate Revisions Score of 19 and Quality Score of 37.

Comparing Laureate Education, Inc. and Gaotu Techedu Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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