Financial Review: GSX Techedu (GSX) & Its Competitors

GSX Techedu (NYSE: GSX) is one of 50 public companies in the “Educational services” industry, but how does it contrast to its peers? We will compare GSX Techedu to similar businesses based on the strength of its risk, institutional ownership, earnings, analyst recommendations, valuation, profitability and dividends.

Profitability

This table compares GSX Techedu and its peers’ 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 697.93% -24.94% 3.89%

Analyst Recommendations

This is a summary of recent recommendations and price targets for GSX Techedu and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 1 0 5 0 2.67
GSX Techedu Competitors 336 1035 1157 52 2.36

GSX Techedu currently has a consensus price target of $43.80, suggesting a potential upside of 2.53%. As a group, “Educational services” companies have a potential upside of 16.76%. Given GSX Techedu’s peers higher possible upside, analysts plainly believe GSX Techedu has less favorable growth aspects than its peers.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
GSX Techedu $303.78 million $2.93 million 328.62
GSX Techedu Competitors $538.20 million $33.26 million 8.85

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

Institutional & Insider Ownership

12.2% of GSX Techedu shares are owned by institutional investors. Comparatively, 54.3% of shares of all “Educational services” companies are owned by institutional investors. 4.8% of GSX Techedu shares are owned by insiders. Comparatively, 21.5% of shares of all “Educational services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

GSX Techedu peers 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.

Receive News & Ratings for GSX Techedu Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GSX Techedu and related companies with MarketBeat.com's FREE daily email newsletter.