WallStSmart

New Oriental Education & Technology (EDU)vsStrategic Education Inc (STRA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 340% more annual revenue ($5.66B vs $1.29B). STRA leads profitability with a 10.5% profit margin vs 8.4%. STRA appears more attractively valued with a PEG of 0.66. STRA earns a higher WallStSmart Score of 66/100 (B-).

EDU

Buy

64

out of 100

Grade: C+

Growth: 9.3Profit: 6.0Value: 7.3Quality: 6.3
Piotroski: 4/9

STRA

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.0Value: 8.7Quality: 7.5
Piotroski: 5/9Altman Z: 3.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+82.5%)

Margin of Safety

+82.5%

Fair Value

$350.15

Current Price

$55.82

$294.33 discount

UndervaluedFair: $350.15Overvalued
STRAUndervalued (+71.8%)

Margin of Safety

+71.8%

Fair Value

$273.85

Current Price

$81.66

$192.19 discount

UndervaluedFair: $273.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU4 strengths · Avg: 8.8/10
EPS GrowthGrowth
791.0%10/10

Earnings expanding 791.0% YoY

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

STRA6 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.668/10

Growing faster than its price suggests

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
24.8%8/10

Earnings expanding 24.8% YoY

Areas to Watch

EDU0 concerns · Avg: 0/10

No major concerns identified

STRA3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Market CapQuality
$1.81B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : EDU

The strongest argument for EDU centers on EPS Growth, Debt/Equity, Price/Book. Revenue growth of 23.0% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bull Case : STRA

The strongest argument for STRA centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.66 suggests the stock is reasonably priced for its growth.

Bear Case : EDU

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

Bear Case : STRA

The primary concerns for STRA are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

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

STRA carries more volatility with a beta of 0.50 — expect wider price swings.

EDU is growing revenue faster at 23.0% — sustainability is the question.

EDU generates stronger free cash flow (420M), providing more financial flexibility.

Bottom Line

STRA scores higher overall (66/100 vs 64/100). EDU offers better value entry with a 82.5% margin of safety. 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.

Strategic Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Strategic Education, Inc., offers postsecondary education and non-degree programs. The company is headquartered in Herndon, Virginia.

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