GSX Techedu (NYSE: GSX) is one of 49 public companies in the “Educational services” industry, but how does it contrast to its rivals? We will compare GSX Techedu to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, dividends, profitability and risk.

Institutional and Insider Ownership

20.6% of GSX Techedu shares are owned by institutional investors. Comparatively, 53.1% of shares of all “Educational services” companies are owned by institutional investors. 20.5% of shares of all “Educational services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for GSX Techedu and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 1 0 6 0 2.71
GSX Techedu Competitors 357 1071 1191 56 2.35

GSX Techedu presently has a consensus target price of $44.83, suggesting a potential upside of 7.05%. As a group, “Educational services” companies have a potential upside of 47.28%. Given GSX Techedu’s rivals higher possible upside, analysts clearly believe GSX Techedu has less favorable growth aspects than its rivals.

Profitability

This table compares GSX Techedu and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSX Techedu 11.62% 23.56% 10.54%
GSX Techedu Competitors 721.29% -25.86% 3.64%

Earnings and Valuation

This table compares GSX Techedu and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
GSX Techedu $303.78 million $32.56 million 322.15
GSX Techedu Competitors $560.19 million $53.22 million 40.78

GSX Techedu’s rivals have higher revenue and earnings than GSX Techedu. GSX Techedu is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

GSX Techedu rivals beat GSX Techedu on 7 of the 12 factors compared.

About GSX Techedu

GSX Techedu Inc. operates as an online education company in the People's Republic of China. The company provides online K-12 large-class after-school tutoring services. It offers English courses for children in kindergarten; and courses that help children in grade one through grade seven. The company also provides foreign language courses, including English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams in China; and professional courses primarily for working adults preparing for professional qualification exams comprising teacher's qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. In addition, it offers personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy. Further, the company provides other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. As of March 31, 2019, it had 169 instructors and 522 tutors. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was founded in 2014 and is headquartered in Beijing, China. GSX Techedu Inc. is a subsidiary of Ebetter International Group Limited.

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