Critical Comparison: Mynd.ai (OTCMKTS:MYND) & Gaotu Techedu (NYSE:GOTU)

Mynd.ai (OTCMKTS:MYND) and Gaotu Techedu (NYSE:GOTU) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider & Institutional Ownership

64.6% of Mynd.ai shares are held by institutional investors. Comparatively, 48.4% of Gaotu Techedu shares are held by institutional investors. 36.9% of Mynd.ai shares are held by insiders. Comparatively, 44.9% of Gaotu Techedu shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Mynd.ai has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Gaotu Techedu has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500.

Profitability

This table compares Mynd.ai and Gaotu Techedu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mynd.ai	N/A	N/A	N/A
Gaotu Techedu	-17.63%	-20.26%	-11.51%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Mynd.ai and Gaotu Techedu, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mynd.ai	0	0	0	0	N/A
Gaotu Techedu	1	2	1	0	2.00

Gaotu Techedu has a consensus target price of $7.23, indicating a potential upside of 125.94%. Given Gaotu Techedu’s higher possible upside, analysts clearly believe Gaotu Techedu is more favorable than Mynd.ai.

Earnings and Valuation

This table compares Mynd.ai and Gaotu Techedu”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mynd.ai	$357.05 million	0.18	-$37.86 million	N/A	N/A
Gaotu Techedu	$3.51 billion	0.24	-$1.03 million	($0.08)	-40.00

Gaotu Techedu has higher revenue and earnings than Mynd.ai.

Summary

Gaotu Techedu beats Mynd.ai on 6 of the 11 factors compared between the two stocks.

About Mynd.ai

Mynd.ai, Inc. operates in interactive technology offering hardware and software solutions. The company's solutions help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Its interactive displays and software are available in approximately 1 million learning and training spaces across 126 countries. The company's distribution network of approximately 4,000 reseller partners and its dedicated sales and support teams worldwide enable to deliver the service to its customers. The company was formerly known as Gravitas Education Holdings, Inc. and changed its name to Mynd.ai, Inc. in December 2023. Mynd.ai, Inc. was founded in 1998 and is based in Beijing, China.

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.