WallStSmart

Afya Ltd (AFYA)vsNew Oriental Education & Technology (EDU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 42% more annual revenue ($5.37B vs $3.77B). AFYA leads profitability with a 20.1% profit margin vs 7.8%. AFYA trades at a lower P/E of 8.5x. EDU earns a higher WallStSmart Score of 69/100 (B-).

AFYA

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 8.3Quality: 5.8
Piotroski: 5/9

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

AFYAUndervalued (+74.6%)

Margin of Safety

+74.6%

Fair Value

$61.03

Current Price

$14.44

$46.59 discount

UndervaluedFair: $61.03Overvalued
EDUUndervalued (+81.9%)

Margin of Safety

+81.9%

Fair Value

$339.19

Current Price

$45.74

$293.45 discount

UndervaluedFair: $339.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AFYA4 strengths · Avg: 9.8/10
P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
38.9%10/10

Strong operational efficiency at 38.9%

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

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
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

Areas to Watch

AFYA2 concerns · Avg: 3.5/10
EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Market CapQuality
$1.25B3/10

Smaller company, higher risk/reward

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 : AFYA

The strongest argument for AFYA centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 20.1% and operating margin at 38.9%.

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 : AFYA

The primary concerns for AFYA are EPS Growth, Market Cap.

Bear Case : EDU

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

Key Dynamics to Monitor

AFYA profiles as a mature stock while EDU is a growth play — different risk/reward profiles.

AFYA carries more volatility with a beta of 0.39 — expect wider price swings.

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

AFYA generates stronger free cash flow (418M), providing more financial flexibility.

Bottom Line

EDU scores higher overall (69/100 vs 62/100) and 19.8% revenue growth. AFYA offers better value entry with a 74.6% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Afya Ltd

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Afya Limited, is a medical education group in Brazil. The company is headquartered in Nova Lima, Brazil.

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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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