Boxlight (NASDAQ:BOXL) and Gaotu Techedu (NYSE:GOTU) Head-To-Head Review

Boxlight (NASDAQ:BOXL) and Gaotu Techedu (NYSE:GOTU) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boxlight	-13.16%	-23.06%	-5.73%
Gaotu Techedu	6.89%	5.74%	3.81%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Boxlight and Gaotu Techedu, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boxlight	0	0	3	0	3.00
Gaotu Techedu	2	0	0	0	1.00

Boxlight currently has a consensus price target of $7.00, indicating a potential upside of 560.38%. Gaotu Techedu has a consensus price target of $2.30, indicating a potential downside of 17.56%. Given Boxlight’s stronger consensus rating and higher probable upside, analysts clearly believe Boxlight is more favorable than Gaotu Techedu.

Risk & Volatility

Boxlight has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500. Comparatively, Gaotu Techedu has a beta of -0.42, meaning that its stock price is 142% less volatile than the S&P 500.

Institutional & Insider Ownership

8.3% of Boxlight shares are held by institutional investors. Comparatively, 15.8% of Gaotu Techedu shares are held by institutional investors. 7.0% of Boxlight shares are held by company insiders. Comparatively, 44.9% of Gaotu Techedu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Boxlight and Gaotu Techedu’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boxlight	$180.72 million	0.06	-$3.74 million	($2.58)	-0.41
Gaotu Techedu	$2.65 billion	0.27	$1.91 million	$0.10	27.50

Gaotu Techedu has higher revenue and earnings than Boxlight. Boxlight is trading at a lower price-to-earnings ratio than Gaotu Techedu, indicating that it is currently the more affordable of the two stocks.

Summary

Gaotu Techedu beats Boxlight on 10 of the 14 factors compared between the two stocks.

About Boxlight

Boxlight Corporation develops, sells, and services interactive classroom technology products and solutions for the K-12 education market worldwide. The company provides interactive and non-interactive projectors and flat panel displays, interactive touch projectors, touchboards, and MimioTeach that could turn any whiteboard interactive; and accessory document cameras, teacher pads for remote control, and assessment systems under the Mimio and Clevertouch brands. It also offers MimioStudio Interactive Instructional software that enables the creation, editing, and presentation of interactive instructional lessons and activities; MimioMobile, a software accessory for MimioStudio; Oktopus Instructional and Whiteboarding software that enables the creation, editing, and presentation of interactive instructional lessons and activities; Notes+, a software accessory for use with Oktopus software; GameZones, a multi-student interactive gaming software; and MimioConnect, an online student engagement platform. In addition, the company provides Juno, a towering standard of sound quality that reinforces a teacher's voice; Mimio MyBot system that bridges the gap between learning about robotics in the classroom and the application of robotics; Robo3D printers; MyStemKits, which offers standards-driven lesson plans for grades K-12 math and science teachers; MimioView document camera; EzRoom, an integrated AV solution; Lyrik, an amplification solution; and Conductor School Communication System, an IP-based, campus-wide communication and control solution, as well as peripherals and accessories, such as mobile carts, installation accessories, and wall-mount accessories for interactive and standard projectors, and LED flat panels. Further, it offers classroom training, professional development, and educator certification services. The company was formerly known as Logical Choice Corporation. Boxlight Corporation was founded in 1985 and is headquartered in Duluth, Georgia.

About Gaotu Techedu

Gaotu Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. The company provides foreign language courses comprising English and Japanese, as well as test preparation courses for students taking language certification exams; and professional courses primarily for college students and adults preparing for professional qualification exams, such teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, Certified Tax Agent designation, securities qualification exams, and other exams. It also offers admission courses for admission tests and interviews, including national graduate entrance examination, civil service examinations, and others; and consulting services. In addition, the company provides online IT education courses, such as computer programming, as well as online courses on professional computer coding; career development courses, including memory enhancement courses, leadership and management training courses, and others; and courses to prepare and pass certain language exams for study abroad, such as IELTS and TOEFL. Further, it provides non-academic tutoring and personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and designs and develops course outlines, interactive courseware, practice exercises, and lesson notes, as well as reference books, such as Chinese dictionary, dictionary of idioms, and past exam questions of college entrance examination. Additionally, the company offers smart devices; multi-function translation pen, an electronic translation pen with Chinese/English translation capabilities; and learning apps. 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, the People's Republic of China.