China Bilingual Technology & Education Group (OTCMKTS:CATG) & Gaotu Techedu (NYSE:GOTU) Head-To-Head Review

China Bilingual Technology & Education Group (OTCMKTS:CATG) and Gaotu Techedu (NYSE:GOTU) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Institutional and Insider Ownership

48.4% of Gaotu Techedu shares are owned by institutional investors. 44.9% of Gaotu Techedu shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares China Bilingual Technology & Education Group and Gaotu Techedu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Bilingual Technology & Education Group	N/A	N/A	N/A
Gaotu Techedu	-6.45%	-21.95%	-6.86%

Risk & Volatility

China Bilingual Technology & Education Group has a beta of -2.25, meaning that its stock price is 325% less volatile than the S&P 500. Comparatively, Gaotu Techedu has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Valuation and Earnings

This table compares China Bilingual Technology & Education Group and Gaotu Techedu”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Bilingual Technology & Education Group	N/A	N/A	N/A	N/A	N/A
Gaotu Techedu	$623.84 million	0.95	-$143.71 million	($0.21)	-11.12

China Bilingual Technology & Education Group has higher earnings, but lower revenue than Gaotu Techedu.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for China Bilingual Technology & Education Group and Gaotu Techedu, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Bilingual Technology & Education Group	0	0	0	0	0.00
Gaotu Techedu	1	0	0	0	1.00

Summary

Gaotu Techedu beats China Bilingual Technology & Education Group on 5 of the 8 factors compared between the two stocks.

About China Bilingual Technology & Education Group

Capstone Technologies Group, Inc. intends to operate as a holding company. It engages in customer data platform market, and provides software design, development, and other services. The company was formerly known as China Bilingual Technology & Education Group Inc. and changed its name to Capstone Technologies Group, Inc. in April 2017. Capstone Technologies Group, Inc. is based in Charlotte, North Carolina.

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.