WallStSmart

New Oriental Education & Technology (EDU)vsLaureate Education Inc (LAUR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 209% more annual revenue ($5.37B vs $1.74B). LAUR leads profitability with a 16.1% profit margin vs 7.8%. EDU appears more attractively valued with a PEG of 0.92. LAUR earns a higher WallStSmart Score of 67/100 (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

LAUR

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 7.0Value: 5.3Quality: 5.8
Piotroski: 7/9Altman Z: 2.41
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
LAURSignificantly Overvalued (-78.7%)

Margin of Safety

-78.7%

Fair Value

$19.24

Current Price

$31.24

$12.00 premium

UndervaluedFair: $19.24Overvalued

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

LAUR4 strengths · Avg: 8.8/10
EPS GrowthGrowth
88.4%10/10

Earnings expanding 88.4% YoY

Return on EquityProfitability
28.8%9/10

Every $100 of equity generates 29 in profit

P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
15.4%8/10

15.4% revenue growth

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

LAUR1 concerns · Avg: 1.0/10
Operating MarginProfitability
-10.1%1/10

Operating margin of -10.1%

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 : LAUR

The strongest argument for LAUR centers on EPS Growth, Return on Equity, P/E Ratio. Profitability is solid with margins at 16.1% and operating margin at -10.1%. Revenue growth of 15.4% demonstrates continued momentum.

Bear Case : EDU

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

Bear Case : LAUR

The primary concerns for LAUR are Operating Margin.

Key Dynamics to Monitor

LAUR carries more volatility with a beta of 0.46 — expect wider price swings.

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

LAUR generates stronger free cash flow (54M), providing more financial flexibility.

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

Bottom Line

LAUR scores higher overall (67/100 vs 66/100), backed by strong 16.1% margins and 15.4% revenue growth. EDU offers better value entry with a 82.6% 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.

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.

Laureate Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Laureate Education, Inc. offers higher education programs and services to students through a network of universities and institutions of higher education. The company is headquartered in Baltimore, Maryland.

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