WallStSmart

New Oriental Education & Technology (EDU)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Target Corporation generates 1849% more annual revenue ($104.78B vs $5.37B). EDU leads profitability with a 7.8% profit margin vs 3.5%. 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

TGT

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 5.5Value: 7.3Quality: 5.3
Piotroski: 4/9Altman Z: 2.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+82.6%)

Margin of Safety

+82.6%

Fair Value

$352.84

Current Price

$54.69

$298.15 discount

UndervaluedFair: $352.84Overvalued
TGTUndervalued (+33.2%)

Margin of Safety

+33.2%

Fair Value

$171.60

Current Price

$129.75

$41.85 discount

UndervaluedFair: $171.60Overvalued

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

TGT4 strengths · Avg: 8.5/10
Market CapQuality
$58.08B9/10

Large-cap with strong market position

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

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

TGT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Revenue GrowthGrowth
-1.5%2/10

Revenue declined 1.5%

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 : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.

Bear Case : EDU

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

Bear Case : TGT

The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

TGT carries more volatility with a beta of 1.03 — expect wider price swings.

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

TGT generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

EDU scores higher overall (66/100 vs 48/100) and 19.8% revenue growth. TGT offers better value entry with a 33.2% margin of safety. Both earn "Strong Buy" and "Hold" 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.

Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

Want to dig deeper into these stocks?