WallStSmart

Afya Ltd (AFYA)vsGrand Canyon Education Inc (LOPE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Afya Ltd generates 235% more annual revenue ($3.83B vs $1.14B). AFYA leads profitability with a 20.4% profit margin vs 19.6%. AFYA trades at a lower P/E of 8.2x. LOPE earns a higher WallStSmart Score of 69/100 (B-).

AFYA

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 8.3Quality: 6.3
Piotroski: 5/9

LOPE

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 9.0Value: 5.3Quality: 8.5
Piotroski: 4/9Altman Z: 8.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AFYAUndervalued (+74.2%)

Margin of Safety

+74.2%

Fair Value

$59.99

Current Price

$13.89

$46.10 discount

UndervaluedFair: $59.99Overvalued
LOPESignificantly Overvalued (-49.6%)

Margin of Safety

-49.6%

Fair Value

$107.14

Current Price

$151.20

$44.06 premium

UndervaluedFair: $107.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AFYA4 strengths · Avg: 9.8/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

LOPE5 strengths · Avg: 9.0/10
Return on EquityProfitability
31.6%10/10

Every $100 of equity generates 32 in profit

Altman Z-ScoreHealth
8.0110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.908/10

Growing faster than its price suggests

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

Areas to Watch

AFYA1 concerns · Avg: 3.0/10
Market CapQuality
$1.22B3/10

Smaller company, higher risk/reward

LOPE0 concerns · Avg: 0/10

No major concerns identified

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 20.4% and operating margin at 30.6%.

Bull Case : LOPE

The strongest argument for LOPE centers on Return on Equity, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.6% and operating margin at 22.0%. PEG of 0.90 suggests the stock is reasonably priced for its growth.

Bear Case : AFYA

The primary concerns for AFYA are Market Cap.

Bear Case : LOPE

No major red flags identified for LOPE, but monitor valuation.

Key Dynamics to Monitor

LOPE carries more volatility with a beta of 0.58 — expect wider price swings.

LOPE is growing revenue faster at 6.7% — sustainability is the question.

AFYA generates stronger free cash flow (173M), providing more financial flexibility.

Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LOPE scores higher overall (69/100 vs 66/100), backed by strong 19.6% margins. AFYA offers better value entry with a 74.2% margin of safety. Both earn "Strong Buy" and "Strong 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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Grand Canyon Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Grand Canyon Education, Inc. provides educational services to colleges and universities in the United States. The company is headquartered in Phoenix, Arizona.

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