WallStSmart

Educational Development Corporation (EDUC)vsScholastic Corporation (SCHL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Scholastic Corporation generates 6262% more annual revenue ($1.61B vs $25.37M). EDUC leads profitability with a 16.1% profit margin vs 3.9%. SCHL appears more attractively valued with a PEG of 1.80. EDUC earns a higher WallStSmart Score of 55/100 (C).

EDUC

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 4.5Value: 10.0Quality: 7.5
Piotroski: 2/9Altman Z: 1.78

SCHL

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 3.5Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUCUndervalued (+93.6%)

Margin of Safety

+93.6%

Fair Value

$22.00

Current Price

$1.30

$20.70 discount

UndervaluedFair: $22.00Overvalued
SCHLUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$112.79

Current Price

$38.86

$73.93 discount

UndervaluedFair: $112.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDUC4 strengths · Avg: 9.8/10
P/E RatioValuation
2.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
2187.8%10/10

Earnings expanding 2187.8% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

SCHL3 strengths · Avg: 8.7/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
26.9%8/10

Earnings expanding 26.9% YoY

Areas to Watch

EDUC4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.784/10

Distress zone — elevated risk

Market CapQuality
$10.81M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

SCHL4 concerns · Avg: 3.3/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Market CapQuality
$977.72M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : EDUC

The strongest argument for EDUC centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 16.1% and operating margin at -21.5%.

Bull Case : SCHL

The strongest argument for SCHL centers on Price/Book, P/E Ratio, EPS Growth.

Bear Case : EDUC

The primary concerns for EDUC are PEG Ratio, Altman Z-Score, Market Cap.

Bear Case : SCHL

The primary concerns for SCHL are PEG Ratio, Market Cap, Return on Equity. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

EDUC profiles as a declining stock while SCHL is a value play — different risk/reward profiles.

SCHL carries more volatility with a beta of 1.18 — expect wider price swings.

SCHL is growing revenue faster at -1.9% — sustainability is the question.

EDUC generates stronger free cash flow (2M), providing more financial flexibility.

Bottom Line

EDUC scores higher overall (55/100 vs 53/100), backed by strong 16.1% margins. SCHL offers better value entry with a 68.7% margin of safety. Both earn "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.

Educational Development Corporation

COMMUNICATION SERVICES · PUBLISHING · USA

Educational Development Corporation, a publishing company, is a commercial co-publisher of educational children's books in the United States. The company is headquartered in Tulsa, Oklahoma.

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Scholastic Corporation

COMMUNICATION SERVICES · PUBLISHING · USA

Scholastic Corporation publishes and distributes children's books worldwide. The company is headquartered in New York, New York.

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