WallStSmart

Chegg Inc (CHGG)vsNew Oriental Education & Technology (EDU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 1586% more annual revenue ($5.37B vs $318.78M). EDU leads profitability with a 7.8% profit margin vs -26.9%. CHGG appears more attractively valued with a PEG of 0.12. EDU earns a higher WallStSmart Score of 69/100 (B-).

CHGG

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 2.0Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -4.04

EDU

Strong Buy

69

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 8.7Quality: 8.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CHGG.

EDUUndervalued (+81.9%)

Margin of Safety

+81.9%

Fair Value

$339.19

Current Price

$45.74

$293.45 discount

UndervaluedFair: $339.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHGG3 strengths · Avg: 10.0/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
499.6%10/10

Earnings expanding 499.6% YoY

EDU6 strengths · Avg: 8.5/10
EPS GrowthGrowth
60.0%10/10

Earnings expanding 60.0% YoY

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.808/10

Growing faster than its price suggests

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

Areas to Watch

CHGG4 concerns · Avg: 2.3/10
Market CapQuality
$141.07M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-70.8%2/10

ROE of -70.8% — below average capital efficiency

Revenue GrowthGrowth
-47.9%2/10

Revenue declined 47.9%

Altman Z-ScoreHealth
-4.042/10

Distress zone — elevated risk

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

Comparative Analysis Report

WallStSmart Research

Bull Case : CHGG

The strongest argument for CHGG centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.12 suggests the stock is reasonably priced for its growth.

Bull Case : EDU

The strongest argument for EDU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bear Case : CHGG

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

Bear Case : EDU

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

Key Dynamics to Monitor

CHGG profiles as a turnaround stock while EDU is a growth play — different risk/reward profiles.

CHGG carries more volatility with a beta of 2.16 — expect wider price swings.

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

CHGG generates stronger free cash flow (3M), providing more financial flexibility.

Bottom Line

EDU scores higher overall (69/100 vs 49/100) and 19.8% revenue growth. 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.

Chegg Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Chegg, Inc. operates a direct-to-student learning platform that supports students on their journey from high school to college and their career with tools designed to help them learn course materials, be successful in their classes, and save money. money on required materials. . The company is headquartered in Santa Clara, California.

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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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