WallStSmart

New Oriental Education & Technology (EDU)vsStride Inc (LRN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 112% more annual revenue ($5.37B vs $2.54B). LRN leads profitability with a 12.1% profit margin vs 7.8%. LRN appears more attractively valued with a PEG of 0.52. EDU earns a higher WallStSmart Score of 66/100 (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

LRN

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 7.5Value: 8.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.92
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
LRNUndervalued (+15.1%)

Margin of Safety

+15.1%

Fair Value

$101.13

Current Price

$93.08

$8.05 discount

UndervaluedFair: $101.13Overvalued

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

LRN6 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

PEG RatioValuation
0.528/10

Growing faster than its price suggests

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

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

LRN2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

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 : LRN

The strongest argument for LRN centers on Altman Z-Score, Return on Equity, PEG Ratio. PEG of 0.52 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 : LRN

The primary concerns for LRN are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

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

EDU carries more volatility with a beta of 0.32 — expect wider price swings.

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

LRN generates stronger free cash flow (186M), providing more financial flexibility.

Bottom Line

EDU scores higher overall (66/100 vs 65/100) and 19.8% revenue growth. LRN offers better value entry with a 15.1% 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.

Stride Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Stride, Inc., a technology-based education company, provides its own and third-party online educational services, software systems and curricula to facilitate individualized learning for students primarily in kindergarten through grade 12 (K -12) in the United States and internationally. .

Visit Website →

Want to dig deeper into these stocks?