WallStSmart

New Oriental Education & Technology (EDU)vsGraham Holdings Co (GHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 8% more annual revenue ($5.37B vs $4.98B). EDU leads profitability with a 7.8% profit margin vs 6.0%. EDU appears more attractively valued with a PEG of 0.92. EDU earns a higher WallStSmart Score of 66/100 (B-).

EDU

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 8.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.06

GHC

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 5.3Quality: 7.5
Piotroski: 4/9Altman Z: 3.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+82.6%)

Margin of Safety

+82.6%

Fair Value

$351.66

Current Price

$53.14

$298.52 discount

UndervaluedFair: $351.66Overvalued
GHCUndervalued (+5.3%)

Margin of Safety

+5.3%

Fair Value

$1171.08

Current Price

$1134.42

$36.66 discount

UndervaluedFair: $1171.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU4 strengths · Avg: 8.5/10
EPS GrowthGrowth
60.0%10/10

Earnings expanding 60.0% YoY

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

GHC5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.1310/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

Areas to Watch

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

GHC3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

PEG RatioValuation
4.042/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : EDU

The strongest argument for EDU centers on EPS Growth, PEG Ratio, Price/Book. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.

Bull Case : GHC

The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.

Bear Case : EDU

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

Bear Case : GHC

The primary concerns for GHC are Return on Equity, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

EDU profiles as a growth stock while GHC is a value play — different risk/reward profiles.

GHC carries more volatility with a beta of 0.79 — expect wider price swings.

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

GHC generates stronger free cash flow (49M), providing more financial flexibility.

Bottom Line

EDU scores higher overall (66/100 vs 58/100) and 19.8% revenue growth. 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.

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.

Graham Holdings Co

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.

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