WallStSmart

New Oriental Education & Technology (EDU)vsMcGraw Hill, Inc. (MH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 143% more annual revenue ($5.14B vs $2.11B). EDU leads profitability with a 7.4% profit margin vs -3.4%. EDU earns a higher WallStSmart Score of 62/100 (C+).

EDU

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 5.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.06

MH

Avoid

34

out of 100

Grade: F

Growth: 4.7Profit: 4.0Value: 5.0Quality: 4.8
Piotroski: 7/9Altman Z: 0.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$112.32

Current Price

$56.49

$55.83 discount

UndervaluedFair: $112.32Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU3 strengths · Avg: 8.0/10
PEG RatioValuation
0.928/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
45.9%8/10

Earnings expanding 45.9% YoY

MH0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

EDU1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.4%3/10

7.4% margin — thin

MH4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-11.8%2/10

ROE of -11.8% — below average capital efficiency

Altman Z-ScoreHealth
0.202/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : EDU

The strongest argument for EDU centers on PEG Ratio, Price/Book, EPS Growth. Revenue growth of 14.7% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.

Bull Case : MH

MH has a balanced fundamental profile.

Bear Case : EDU

The primary concerns for EDU are Profit Margin.

Bear Case : MH

The primary concerns for MH are Revenue Growth, EPS Growth, Return on Equity.

Key Dynamics to Monitor

EDU profiles as a value stock while MH is a turnaround play — different risk/reward profiles.

EDU is growing revenue faster at 14.7% — sustainability is the question.

EDU generates stronger free cash flow (516M), providing more financial flexibility.

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

Bottom Line

EDU scores higher overall (62/100 vs 34/100) and 14.7% revenue growth. Both earn "Buy" and "Avoid" 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.

McGraw Hill, Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.

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