WallStSmart

New Oriental Education & Technology (EDU)vsFour Seasons Education Cayman (FEDU)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 1954% more annual revenue ($5.37B vs $261.70M). EDU leads profitability with a 7.8% profit margin vs 3.4%. EDU trades at a lower P/E of 17.3x. EDU earns a higher WallStSmart Score of 69/100 (B-).

EDU

Strong Buy

69

out of 100

Grade: B-

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

FEDU

Hold

48

out of 100

Grade: D+

Growth: 6.7Profit: 4.0Value: 7.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.36
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+81.9%)

Margin of Safety

+81.9%

Fair Value

$339.19

Current Price

$45.74

$293.45 discount

UndervaluedFair: $339.19Overvalued
FEDUUndervalued (+47.9%)

Margin of Safety

+47.9%

Fair Value

$19.27

Current Price

$11.00

$8.27 discount

UndervaluedFair: $19.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

FEDU4 strengths · Avg: 9.3/10
Price/BookValuation
0.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
358.6%10/10

Earnings expanding 358.6% YoY

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

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

FEDU4 concerns · Avg: 3.0/10
Market CapQuality
$23.17M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.7%3/10

ROE of 1.7% — below average capital efficiency

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : FEDU

The strongest argument for FEDU centers on Price/Book, EPS Growth, Debt/Equity.

Bear Case : EDU

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

Bear Case : FEDU

The primary concerns for FEDU are Market Cap, Return on Equity, Profit Margin. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

EDU carries more volatility with a beta of 0.18 — expect wider price swings.

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

Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EDU scores higher overall (69/100 vs 48/100) and 19.8% revenue growth. FEDU offers better value entry with a 47.9% 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.

Four Seasons Education Cayman

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

Four Seasons Education (Cayman) Inc., provides after-school education services that focus on mathematics education for kindergarten, elementary, and high school students in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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