WallStSmart

New Oriental Education & Technology (EDU)vsGrand Canyon Education Inc (LOPE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 378% more annual revenue ($5.37B vs $1.13B). LOPE leads profitability with a 19.5% profit margin vs 7.8%. EDU appears more attractively valued with a PEG of 0.92. LOPE earns a higher WallStSmart Score of 69/100 (B-).

EDU

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 8.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.06

LOPE

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 4.7Quality: 7.3
Piotroski: 3/9Altman Z: 7.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+82.6%)

Margin of Safety

+82.6%

Fair Value

$351.66

Current Price

$53.14

$298.52 discount

UndervaluedFair: $351.66Overvalued
LOPESignificantly Overvalued (-42.7%)

Margin of Safety

-42.7%

Fair Value

$112.35

Current Price

$166.32

$53.97 premium

UndervaluedFair: $112.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU4 strengths · Avg: 8.5/10
EPS GrowthGrowth
60.0%10/10

Earnings expanding 60.0% YoY

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

LOPE3 strengths · Avg: 9.7/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Altman Z-ScoreHealth
7.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.8%9/10

Every $100 of equity generates 30 in profit

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

LOPE1 concerns · Avg: 3.0/10
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, PEG Ratio, Price/Book. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.

Bull Case : LOPE

The strongest argument for LOPE centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 19.5% and operating margin at 30.9%. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bear Case : EDU

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

Bear Case : LOPE

The primary concerns for LOPE are Piotroski F-Score.

Key Dynamics to Monitor

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

LOPE carries more volatility with a beta of 0.67 — expect wider price swings.

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

LOPE generates stronger free cash flow (80M), providing more financial flexibility.

Bottom Line

LOPE scores higher overall (69/100 vs 66/100), backed by strong 19.5% margins. EDU offers better value entry with a 82.6% margin of safety. Both earn "Strong Buy" and "Strong 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.

Grand Canyon Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Grand Canyon Education, Inc. provides educational services to colleges and universities in the United States. The company is headquartered in Phoenix, Arizona.

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