WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 974% more annual revenue ($5.66B vs $527.01M). EDU leads profitability with a 8.4% profit margin vs -4.6%. AACG appears more attractively valued with a PEG of 0.62. EDU earns a higher WallStSmart Score of 64/100 (C+).

AACG

Hold

43

out of 100

Grade: D

Growth: 6.0Profit: 4.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: -2.03

EDU

Buy

64

out of 100

Grade: C+

Growth: 9.3Profit: 6.0Value: 8.0Quality: 6.3
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AACG.

EDUUndervalued (+82.6%)

Margin of Safety

+82.6%

Fair Value

$351.29

Current Price

$54.52

$296.77 discount

UndervaluedFair: $351.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AACG3 strengths · Avg: 9.3/10
Price/BookValuation
0.4x10/10

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

EDU5 strengths · Avg: 8.6/10
EPS GrowthGrowth
791.0%10/10

Earnings expanding 791.0% YoY

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

AACG4 concerns · Avg: 2.8/10
Market CapQuality
$41.48M3/10

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

EDU1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-76.25M2/10

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, P/E Ratio. Revenue growth of 23.0% demonstrates continued momentum. PEG of 1.05 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 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 23.0% — sustainability is the question.

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

Bottom Line

EDU scores higher overall (64/100 vs 43/100) and 23.0% revenue growth. Both earn "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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