New Oriental Education & Technology (EDU)vsPepsiCo Inc (PEP)
EDU
New Oriental Education & Technology
$53.14
-1.26%
CONSUMER DEFENSIVE · Cap: $8.97B
PEP
PepsiCo Inc
$157.41
-1.79%
CONSUMER DEFENSIVE · Cap: $215.17B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 1676% more annual revenue ($95.45B vs $5.37B). PEP leads profitability with a 9.2% profit margin vs 7.8%. EDU appears more attractively valued with a PEG of 0.92. EDU earns a higher WallStSmart Score of 66/100 (B-).
EDU
Strong Buy66
out of 100
Grade: B-
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.6%
Fair Value
$351.66
Current Price
$53.14
$298.52 discount
Margin of Safety
+0.2%
Fair Value
$154.83
Current Price
$157.41
$2.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.0% YoY
Growing faster than its price suggests
Reasonable price relative to book value
19.8% revenue growth
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
7.8% margin — thin
Negative free cash flow — burning cash
Expensive relative to growth rate
Trading at 10.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
Bear Case : EDU
The primary concerns for EDU are Profit Margin, Free Cash Flow.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
EDU profiles as a growth stock while PEP is a value play — different risk/reward profiles.
PEP carries more volatility with a beta of 0.41 — expect wider price swings.
EDU is growing revenue faster at 19.8% — sustainability is the question.
EDU generates stronger free cash flow (-7M), providing more financial flexibility.
Bottom Line
EDU scores higher overall (66/100 vs 63/100) 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.
PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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