New Oriental Education & Technology (EDU)vsLegacy Education Inc. (LGCY)
EDU
New Oriental Education & Technology
$56.49
+2.17%
CONSUMER DEFENSIVE · Cap: $9.22B
LGCY
Legacy Education Inc.
$13.20
+1.85%
CONSUMER DEFENSIVE · Cap: $163.47M
Smart Verdict
WallStSmart Research — data-driven comparison
New Oriental Education & Technology generates 6744% more annual revenue ($5.14B vs $75.11M). LGCY leads profitability with a 11.0% profit margin vs 7.4%. LGCY trades at a lower P/E of 21.6x. EDU earns a higher WallStSmart Score of 62/100 (C+).
EDU
Buy62
out of 100
Grade: C+
LGCY
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.5%
Fair Value
$112.32
Current Price
$56.49
$55.83 discount
Margin of Safety
+62.6%
Fair Value
$28.08
Current Price
$13.20
$14.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 45.9% YoY
Revenue surging 40.7% year-over-year
Earnings expanding 50.0% YoY
Every $100 of equity generates 20 in profit
Areas to Watch
7.4% margin — thin
Smaller company, higher risk/reward
Comparative Analysis Report
WallStSmart ResearchBull Case : EDU
The strongest argument for EDU centers on PEG Ratio, Price/Book, EPS Growth. Revenue growth of 14.7% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bull Case : LGCY
The strongest argument for LGCY centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 40.7% demonstrates continued momentum.
Bear Case : EDU
The primary concerns for EDU are Profit Margin.
Bear Case : LGCY
The primary concerns for LGCY are Market Cap.
Key Dynamics to Monitor
EDU profiles as a value stock while LGCY is a growth play — different risk/reward profiles.
LGCY is growing revenue faster at 40.7% — sustainability is the question.
EDU generates stronger free cash flow (516M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EDU scores higher overall (62/100 vs 58/100) and 14.7% revenue growth. LGCY offers better value entry with a 62.6% 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.
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.
Legacy Education Inc.
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Legacy Reserves Inc., an independent energy company, is engaged in the acquisition, development and production of oil and natural gas properties in the United States.
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