GOTU vs. EDU

Last updated Jun 3, 2026

GOTU (Gaotu Techedu Inc.) and EDU (New Oriental Education & Technology Group Inc.) are both stocks. Both operate in the Education & Training Services industry within the Consumer Defensive sector. Over the past 5 years, GOTU returned -35.03%/yr vs -12.15%/yr for EDU. A 0.51 correlation means they provide meaningful diversification when combined.

Performance

GOTU vs. EDU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Gaotu Techedu Inc. (GOTU) and New Oriental Education & Technology Group Inc. (EDU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GOTU achieves a -94.25% return, which is significantly lower than EDU's -13.24% return.

GOTU

• 1D: -10.36%
• 1M: -10.82%
• YTD: -94.25%
• 6M: -93.40%
• 1Y: -54.23%
• 3Y*: -14.73%
• 5Y*: -35.03%
• 10Y*: —

EDU

• 1D: 0.23%
• 1M: -11.29%
• YTD: -13.24%
• 6M: -9.70%
• 1Y: 5.81%
• 3Y*: 4.48%
• 5Y*: -12.15%
• 10Y*: 1.32%

*Multi-year figures are annualized to reflect compound growth (CAGR)

GOTU vs. EDU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
GOTU Gaotu Techedu Inc.	-94.25%	1,274.43%	-39.50%	53.39%	21.65%	-96.25%	136.55%	108.59%
EDU New Oriental Education & Technology Group Inc.	-13.24%	-13.27%	-11.55%	110.45%	65.81%	-88.70%	53.25%	37.78%

Correlation

The correlation between GOTU and EDU is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (All Time) Calculated using the full available price history since Jun 7, 2019	0.51

Over the past year, the correlation between GOTU and EDU has dropped to 0.23 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.

Fundamentals

Market Cap GOTU : $624.91M EDU : $7.53B
EPS GOTU : -$0.88 EDU : $2.63
PS Ratio GOTU : 0.10 EDU : 1.40
PB Ratio GOTU : 0.50 EDU : 1.84
Total Revenue (TTM) GOTU : $6.10B EDU : $5.39B
Gross Profit (TTM) GOTU : $4.11B EDU : $2.96B
EBITDA (TTM) GOTU : -$355.98M EDU : $716.97M

Return for Risk

GOTU vs. EDU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

GOTU

GOTU Risk / Return Rank: 54
GOTU Sharpe Ratio Rank: 36
GOTU Sortino Ratio Rank: 98
GOTU Omega Ratio Rank: 99
GOTU Calmar Ratio Rank: 20
GOTU Martin Ratio Rank: 18

EDU

EDU Risk / Return Rank: 42
EDU Sharpe Ratio Rank: 45
EDU Sortino Ratio Rank: 41
EDU Omega Ratio Rank: 40
EDU Calmar Ratio Rank: 41
EDU Martin Ratio Rank: 42

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GOTU vs. EDU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Gaotu Techedu Inc. (GOTU) and New Oriental Education & Technology Group Inc. (EDU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	GOTU	EDU	Difference
Sharpe ratio Return per unit of total volatility	-0.09	0.16	-0.25
Sortino ratio Return per unit of downside risk	5.17	0.52	+4.65
Omega ratio Gain probability vs. loss probability	2.41	1.06	+1.34
Calmar ratio Return relative to maximum drawdown	-0.57	0.07	-0.65
Martin ratio Return relative to average drawdown	-1.06	0.17	-1.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GOTU vs. EDU - Sharpe Ratio Comparison

The current GOTU Sharpe Ratio is -0.09, which is lower than the EDU Sharpe Ratio of 0.16. The chart below compares the historical Sharpe Ratios of GOTU and EDU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	GOTU	EDU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.09	0.16	-0.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.12	-0.17	+0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.02	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	0.22	-0.32

Drawdowns

GOTU vs. EDU - Drawdown Comparison

The maximum GOTU drawdown since its inception was -99.54%, roughly equal to the maximum EDU drawdown of -95.61%. Use the drawdown chart below to compare losses from any high point for GOTU and EDU.

Drawdown Indicators

	GOTU	EDU	Difference
Max Drawdown Largest peak-to-trough decline	-99.54%	-95.61%	-3.93%
Max Drawdown (1Y) Largest decline over 1 year	-95.29%	-27.06%	-68.23%
Max Drawdown (3Y) Largest decline over 3 years	-95.29%	-56.77%	-38.52%
Max Drawdown (5Y) Largest decline over 5 years	-95.98%	-91.13%	-4.85%
Max Drawdown (10Y) Largest decline over 10 years	—	-95.61%	—
Current Drawdown Current decline from peak	-98.79%	-75.21%	-23.58%
Average Drawdown Average peak-to-trough decline	-75.95%	-32.97%	-42.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	51.38%	11.48%	+39.90%

Volatility

GOTU vs. EDU - Volatility Comparison

Gaotu Techedu Inc. (GOTU) has a higher volatility of 16.43% compared to New Oriental Education & Technology Group Inc. (EDU) at 10.07%. This indicates that GOTU's price experiences larger fluctuations and is considered to be riskier than EDU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GOTU	EDU	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.43%	10.07%	+6.36%
Volatility (6M) Calculated over the trailing 6-month period	270.91%	23.64%	+247.27%
Volatility (1Y) Calculated over the trailing 1-year period	603.30%	37.81%	+565.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	287.54%	71.70%	+215.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	248.75%	59.61%	+189.14%

Dividends

GOTU vs. EDU - Dividend Comparison

GOTU has not paid dividends to shareholders, while EDU's dividend yield for the trailing twelve months is around 2.54%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EDU New Oriental Education & Technology Group Inc.	2.54%	1.09%	0.93%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.46%	0.00%	1.28%
GOTU Gaotu Techedu Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

GOTU vs. EDU - Profitability Comparison

The chart below illustrates the profitability comparison between Gaotu Techedu Inc. and New Oriental Education & Technology Group Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

GOTU - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Gaotu Techedu Inc. reported a gross profit of 1.13B and revenue of 1.66B. Therefore, the gross margin over that period was 67.9%.

EDU - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, New Oriental Education & Technology Group Inc. reported a gross profit of 766.52M and revenue of 1.43B. Therefore, the gross margin over that period was 53.7%.

GOTU - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Gaotu Techedu Inc. reported an operating income of -116.42M and revenue of 1.66B, resulting in an operating margin of -7.0%.

EDU - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, New Oriental Education & Technology Group Inc. reported an operating income of 181.59M and revenue of 1.43B, resulting in an operating margin of 12.7%.

GOTU - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Gaotu Techedu Inc. reported a net income of -83.02M and revenue of 1.66B, resulting in a net margin of -5.0%.

EDU - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, New Oriental Education & Technology Group Inc. reported a net income of 127.71M and revenue of 1.43B, resulting in a net margin of 9.0%.

Frequently Asked Questions

Can I hold both GOTU and EDU in my portfolio?

GOTU and EDU have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GOTU or EDU?

GOTU has higher volatility (16.43%) compared to EDU (10.07%). In terms of maximum drawdown, GOTU dropped -99.54% vs EDU's -95.61%.

Which has better risk-adjusted returns?

EDU currently has the higher Sharpe Ratio (0.16 vs -0.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.