EDU vs GOTU: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
EDU and GOTU are similarly sized, but EDU trades noticeably cheaper on forward earnings (11.68x vs 16.61x): the market is paying up for GOTU's profile and pricing EDU more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
EDU vs GOTU: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | EDU | GOTU | What it tells you |
|---|---|---|---|
| Forward P/E | 11.68 | 16.61 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Beta | 0.18 | 0.62 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 71% of range | 15% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.27 | 2.39 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: EDU is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how EDU and GOTU affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. EDU and GOTU share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined EDU and GOTU exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does New Oriental Education & Technology Group (EDU) do?
New Oriental Education & Technology Group is a Beijing-based education company that trades in the US as an ADR under the ticker EDU (a Hong Kong listing, 9901, also exists). Founded in 1993 as an English and test-prep school, it became China's best-known tutoring brand before Beijing's 2021 "double reduction" policy banned for-profit academic tutoring of core K-9 subjects and wiped out most of the company's original business. Since then it has rebuilt around segments that remain permitted: overseas test preparation and study-abroad consulting, non-academic tutoring (arts, coding, STEAM, study tours), intelligent learning devices, and a fast-growing live-streaming e-commerce operation run through its East Buy (Oriental Select) platform.
What does Gaotu Techedu (GOTU) do?
Gaotu Techedu Inc. (formerly GSX Techedu) is a Chinese education technology company that provides learning services across non-academic tutoring, college and adult education, and AI-powered language and programming courses. Its business was reshaped by China's 2021 "double reduction" policy, which effectively banned for-profit academic tutoring for compulsory-education students and forced the entire sector, Gaotu included, to pivot away from its old core. Gaotu now emphasizes lifelong-learning categories that face lighter regulation, blends online delivery with a growing network of offline learning centers, and leans heavily on proprietary AI to personalize instruction and improve operating efficiency.
EDU vs GOTU: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- EDU drivers: Overseas test prep and study-abroad demand; New learning businesses and smart devices.
- GOTU drivers: Non-academic and adult learning growth; Offline expansion and AI integration.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risk is Chinese regulation: the same government that erased the K-9 tutoring business could tighten rules on non-academic tutoring, devices, or e-commerce with little warning. For GOTU, the overriding risks are Chinese regulatory and geopolitical.
EDU or GOTU: which should you pick?
EDU vs GOTU: the full fundamentals
EDU. New Oriental returned to solid growth after the crackdown, with fiscal 2025 revenue near $4.9 billion and fiscal 2026 guided toward roughly $5.6 billion. The stock has traded well below pre-2021 levels and below some analysts' fair-value estimates, reflecting a persistent China-ADR discount rather than weak operations. A large net cash balance means enterprise value is well below market cap.
GOTU. All figures are approximate, reported partly in renminbi, and tied to the asOf date; verify live numbers and the latest filings before acting. Gaotu is a turnaround with swinging profitability, so trailing earnings multiples are of limited use. A large cash balance can make the enterprise look inexpensive, but Chinese ADR discounts, VIE structure, and regulatory risk are why the market applies caution. Judge the story on the growth-to-profit conversion and China policy backdrop, not a single ratio.
Headline figures (approximate, July 2026): EDU shows revenue (fy2025) ~$4.9B, revenue (fy2026 guidance) ~$5.6B, recent quarterly revenue growth ~20% YoY, net income (fy2025) ~$372M; GOTU shows revenue trend Growing again after the 2021 crackdown; full-year 2025 revenue up roughly 35% year over year and Q1 2026 up about 13% (figures approximate, verify live), profitability Inconsistent; full-year 2025 was still a net loss (narrower than 2024) with some profitable quarters, so not yet reliably profitable, deferred revenue A key leading indicator; up more than 20% year over year in early 2026, pointing to continued demand, balance sheet Cash-rich relative to market value; has funded buybacks of roughly 33 million ADSs for close to US$98 million.
The bottom line: EDU vs GOTU
EDU and GOTU are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined EDU and GOTU exposure against your real portfolio. It is not an investment adviser.
Wondering how EDU or GOTU fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in New Oriental Education & Technology Group with AI
Connect the broker you already use and ask Walnut's AI how EDU fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between EDU and GOTU?
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New Oriental Education & Technology Group is a Beijing-based education company that trades in the US as an ADR under the ticker EDU (a Hong Kong listing, 9901, also exists). Gaotu Techedu Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is EDU or GOTU the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, EDU or GOTU?
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On forward P/E (as of August 2026), EDU trades at 11.68x and GOTU at 16.61x, so EDU is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both EDU and GOTU?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of EDU vs GOTU?
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EDU: The dominant risk is Chinese regulation: the same government that erased the K-9 tutoring business could tighten rules on non-academic tutoring, devices, or e-commerce with little warning. As a US-listed ADR built on a VIE structure, holders own contractual claims on offshore entities rather than direct equity in the operating businesses, and US-China tensions keep delisting risk alive. The East Buy e-commerce segment is competitive, personality-driven, and lower margin, so its revenue can be lumpy. Currency (renminbi) translation, macro softness in China, and intense competition from TAL Education and others add further volatility. GOTU: The overriding risks are Chinese regulatory and geopolitical. China's education sector was upended overnight by the 2021 crackdown, and further policy shifts could again reshape what Gaotu is allowed to sell. As a US-listed Chinese ADR, GOTU also carries delisting risk tied to US-China audit and listing disputes, plus the variable-interest-entity structure common to Chinese companies, which means US holders own shares in an offshore holding entity rather than the operating business directly. Currency swings between the renminbi and the dollar affect reported results. Competitively, Gaotu faces far larger and better-capitalized rivals in New Oriental and TAL Education. Finally, profitability has been inconsistent and the stock is volatile, so results and sentiment can move sharply on both company and macro news.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell EDU or GOTU; figures are approximate and dated (as of August 2026). Verify current data before investing.