WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 104% more annual revenue ($5.14B vs $2.52B). LRN leads profitability with a 12.7% profit margin vs 7.4%. LRN appears more attractively valued with a PEG of 0.46. LRN earns a higher WallStSmart Score of 77/100 (B+).

EDU

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 5.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.06

LRN

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 7.0Value: 10.0Quality: 9.0
Piotroski: 4/9Altman Z: 3.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$112.32

Current Price

$54.98

$57.34 discount

UndervaluedFair: $112.32Overvalued
LRNUndervalued (+71.8%)

Margin of Safety

+71.8%

Fair Value

$304.67

Current Price

$85.06

$219.61 discount

UndervaluedFair: $304.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU3 strengths · Avg: 8.0/10
PEG RatioValuation
0.918/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
45.9%8/10

Earnings expanding 45.9% YoY

LRN6 strengths · Avg: 9.5/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

Revenue GrowthGrowth
47.8%10/10

Revenue surging 47.8% year-over-year

EPS GrowthGrowth
108.3%10/10

Earnings expanding 108.3% YoY

Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

P/E RatioValuation
12.7x8/10

Attractively priced relative to earnings

Areas to Watch

EDU1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.4%3/10

7.4% margin — thin

LRN0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull 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 0.91 suggests the stock is reasonably priced for its growth.

Bull Case : LRN

The strongest argument for LRN centers on PEG Ratio, Revenue Growth, EPS Growth. Revenue growth of 47.8% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bear Case : EDU

The primary concerns for EDU are Profit Margin.

Bear Case : LRN

No major red flags identified for LRN, but monitor valuation.

Key Dynamics to Monitor

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

EDU carries more volatility with a beta of 0.34 — expect wider price swings.

LRN is growing revenue faster at 47.8% — sustainability is the question.

EDU generates stronger free cash flow (516M), providing more financial flexibility.

Bottom Line

LRN scores higher overall (77/100 vs 62/100) and 47.8% revenue growth. EDU offers better value entry with a 45.5% margin of safety. Both earn "Strong 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.

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. .

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