TAL vs. GOTU

Last updated Jun 3, 2026

TAL (TAL Education Group) and GOTU (Gaotu Techedu Inc.) are both stocks. Both operate in the Education & Training Services industry within the Consumer Defensive sector. Over the past 5 years, TAL returned -21.42%/yr vs -35.03%/yr for GOTU. A 0.58 correlation means they provide meaningful diversification when combined.

Performance

TAL vs. GOTU - Performance Comparison

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

Returns By Period

In the year-to-date period, TAL achieves a -8.62% return, which is significantly higher than GOTU's -94.25% return.

TAL

• 1D: -0.89%
• 1M: -10.74%
• YTD: -8.62%
• 6M: -10.74%
• 1Y: -1.58%
• 3Y*: 17.09%
• 5Y*: -21.42%
• 10Y*: 0.80%

GOTU

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

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

TAL vs. GOTU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
TAL TAL Education Group	-8.62%	8.88%	-20.67%	79.15%	79.39%	-94.50%	48.36%	40.24%
GOTU Gaotu Techedu Inc.	-94.25%	1,274.43%	-39.50%	53.39%	21.65%	-96.25%	136.55%	108.59%

Correlation

The correlation between TAL and GOTU is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (All Time) Calculated using the full available price history since Jun 7, 2019	0.58

Over the past year, the correlation between TAL and GOTU has dropped to 0.32 - well below their long-term average of 0.58, suggesting their price drivers have been diverging.

Fundamentals

Market Cap TAL : $1.86B GOTU : $624.91M
EPS TAL : $2.82 GOTU : -$0.88
PS Ratio TAL : 0.62 GOTU : 0.10
PB Ratio TAL : 0.49 GOTU : 0.50
Total Revenue (TTM) TAL : $3.02B GOTU : $6.10B
Gross Profit (TTM) TAL : $1.67B GOTU : $4.11B
EBITDA (TTM) TAL : $274.66M GOTU : -$355.98M

Return for Risk

TAL vs. GOTU — Risk / Return Rank

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

TAL

TAL Risk / Return Rank: 38
TAL Sharpe Ratio Rank: 38
TAL Sortino Ratio Rank: 36
TAL Omega Ratio Rank: 35
TAL Calmar Ratio Rank: 41
TAL Martin Ratio Rank: 41

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

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.

TAL vs. GOTU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TAL Education Group (TAL) and Gaotu Techedu Inc. (GOTU). 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.

	TAL	GOTU	Difference
Sharpe ratio Return per unit of total volatility	-0.04	-0.09	+0.05
Sortino ratio Return per unit of downside risk	0.28	5.17	-4.89
Omega ratio Gain probability vs. loss probability	1.03	2.41	-1.37
Calmar ratio Return relative to maximum drawdown	0.06	-0.57	+0.63
Martin ratio Return relative to average drawdown	0.13	-1.06	+1.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TAL vs. GOTU - Sharpe Ratio Comparison

The current TAL Sharpe Ratio is -0.04, which is higher than the GOTU Sharpe Ratio of -0.09. The chart below compares the historical Sharpe Ratios of TAL and GOTU, 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

	TAL	GOTU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.04	-0.09	+0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.25	-0.12	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.01	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	-0.09	+0.28

Drawdowns

TAL vs. GOTU - Drawdown Comparison

The maximum TAL drawdown since its inception was -98.06%, roughly equal to the maximum GOTU drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for TAL and GOTU.

Drawdown Indicators

	TAL	GOTU	Difference
Max Drawdown Largest peak-to-trough decline	-98.06%	-99.54%	+1.48%
Max Drawdown (1Y) Largest decline over 1 year	-24.79%	-95.29%	+70.50%
Max Drawdown (3Y) Largest decline over 3 years	-51.31%	-95.29%	+43.98%
Max Drawdown (5Y) Largest decline over 5 years	-94.37%	-95.98%	+1.61%
Max Drawdown (10Y) Largest decline over 10 years	-98.06%	—	—
Current Drawdown Current decline from peak	-88.94%	-98.79%	+9.85%
Average Drawdown Average peak-to-trough decline	-41.79%	-75.95%	+34.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.35%	51.38%	-40.03%

Volatility

TAL vs. GOTU - Volatility Comparison

The current volatility for TAL Education Group (TAL) is 11.09%, while Gaotu Techedu Inc. (GOTU) has a volatility of 16.43%. This indicates that TAL experiences smaller price fluctuations and is considered to be less risky than GOTU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAL	GOTU	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.09%	16.43%	-5.34%
Volatility (6M) Calculated over the trailing 6-month period	33.77%	270.91%	-237.14%
Volatility (1Y) Calculated over the trailing 1-year period	43.93%	603.30%	-559.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	85.99%	287.54%	-201.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	69.34%	248.75%	-179.41%

Dividends

TAL vs. GOTU - Dividend Comparison

Neither TAL nor GOTU has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
TAL TAL Education Group	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.27%	1.28%	4.07%

Financials

TAL vs. GOTU - Profitability Comparison

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

TAL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, TAL Education Group reported a gross profit of 430.24M and revenue of 808.04M. Therefore, the gross margin over that period was 53.2%.

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%.

TAL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, TAL Education Group reported an operating income of 72.98M and revenue of 808.04M, resulting in an operating margin of 9.0%.

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%.

TAL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, TAL Education Group reported a net income of 246.51M and revenue of 808.04M, resulting in a net margin of 30.5%.

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%.

Frequently Asked Questions

Can I hold both TAL and GOTU in my portfolio?

TAL and GOTU have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAL or GOTU?

GOTU has higher volatility (16.43%) compared to TAL (11.09%). In terms of maximum drawdown, TAL dropped -98.06% vs GOTU's -99.54%.

Which has better risk-adjusted returns?

TAL currently has the higher Sharpe Ratio (-0.04 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.