WallStSmart

Afya Ltd (AFYA)vsNew Oriental Education & Technology (EDU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 48% more annual revenue ($5.66B vs $3.83B). AFYA leads profitability with a 20.4% profit margin vs 8.4%. AFYA trades at a lower P/E of 8.2x. AFYA earns a higher WallStSmart Score of 66/100 (B-).

AFYA

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 8.3Quality: 6.3
Piotroski: 5/9

EDU

Buy

64

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AFYAUndervalued (+74.2%)

Margin of Safety

+74.2%

Fair Value

$59.99

Current Price

$13.89

$46.10 discount

UndervaluedFair: $59.99Overvalued
EDUUndervalued (+82.5%)

Margin of Safety

+82.5%

Fair Value

$350.15

Current Price

$55.82

$294.33 discount

UndervaluedFair: $350.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AFYA4 strengths · Avg: 9.8/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

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

Areas to Watch

AFYA1 concerns · Avg: 3.0/10
Market CapQuality
$1.22B3/10

Smaller company, higher risk/reward

EDU0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : AFYA

The strongest argument for AFYA centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 20.4% and operating margin at 30.6%.

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.

Bear Case : AFYA

The primary concerns for AFYA are Market Cap.

Bear Case : EDU

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

Key Dynamics to Monitor

AFYA profiles as a mature stock while EDU is a growth play — different risk/reward profiles.

AFYA carries more volatility with a beta of 0.38 — 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

AFYA scores higher overall (66/100 vs 64/100), backed by strong 20.4% margins. 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.

Afya Ltd

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Afya Limited, is a medical education group in Brazil. The company is headquartered in Nova Lima, Brazil.

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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.

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