WallStSmart

ATA Creativity Global (AACG)vsNew Oriental Education & Technology (EDU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 920% more annual revenue ($5.37B vs $527.01M). EDU leads profitability with a 7.8% profit margin vs -4.6%. AACG appears more attractively valued with a PEG of 0.62. EDU earns a higher WallStSmart Score of 69/100 (B-).

AACG

Hold

43

out of 100

Grade: D

Growth: 6.0Profit: 4.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: -1.85

EDU

Strong Buy

69

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 8.7Quality: 8.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AACG.

EDUUndervalued (+81.9%)

Margin of Safety

+81.9%

Fair Value

$338.04

Current Price

$45.26

$292.78 discount

UndervaluedFair: $338.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AACG3 strengths · Avg: 9.3/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
58.5%10/10

Earnings expanding 58.5% YoY

PEG RatioValuation
0.628/10

Growing faster than its price suggests

EDU6 strengths · Avg: 8.5/10
EPS GrowthGrowth
60.0%10/10

Earnings expanding 60.0% YoY

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.808/10

Growing faster than its price suggests

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

Areas to Watch

AACG4 concerns · Avg: 2.8/10
Market CapQuality
$42.35M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.433/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-6.2%2/10

ROE of -6.2% — below average capital efficiency

EDU2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Free Cash FlowQuality
$-7.46M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AACG

The strongest argument for AACG centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.62 suggests the stock is reasonably priced for its growth.

Bull Case : EDU

The strongest argument for EDU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bear Case : AACG

The primary concerns for AACG are Market Cap, Debt/Equity, Piotroski F-Score.

Bear Case : EDU

The primary concerns for EDU are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

AACG profiles as a turnaround stock while EDU is a growth play — different risk/reward profiles.

AACG carries more volatility with a beta of 1.28 — expect wider price swings.

EDU is growing revenue faster at 19.8% — sustainability is the question.

AACG generates stronger free cash flow (3M), providing more financial flexibility.

Bottom Line

EDU scores higher overall (69/100 vs 43/100) and 19.8% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ATA Creativity Global

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

ATA Creativity Global, provides educational services to individual students through its network of training centers in China. The company is headquartered in Beijing, China.

New Oriental Education & Technology

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

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