WallStSmart

New Oriental Education & Technology (EDU)vsMcGraw Hill, Inc. (MH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 167% more annual revenue ($5.66B vs $2.12B). EDU leads profitability with a 8.4% profit margin vs 4.4%. EDU trades at a lower P/E of 19.8x. EDU earns a higher WallStSmart Score of 64/100 (C+).

EDU

Buy

64

out of 100

Grade: C+

Growth: 9.3Profit: 6.0Value: 7.3Quality: 6.3
Piotroski: 4/9

MH

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.0Value: 5.3Quality: 3.5
Piotroski: 6/9Altman Z: 0.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+82.5%)

Margin of Safety

+82.5%

Fair Value

$350.15

Current Price

$55.82

$294.33 discount

UndervaluedFair: $350.15Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU4 strengths · Avg: 8.8/10
EPS GrowthGrowth
791.0%10/10

Earnings expanding 791.0% YoY

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

MH3 strengths · Avg: 8.7/10
EPS GrowthGrowth
9860.0%10/10

Earnings expanding 9860.0% YoY

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

Areas to Watch

EDU0 concerns · Avg: 0/10

No major concerns identified

MH4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Profit MarginProfitability
4.4%3/10

4.4% margin — thin

Return on EquityProfitability
-9.2%2/10

ROE of -9.2% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : EDU

The strongest argument for EDU centers on EPS Growth, Debt/Equity, Price/Book. Revenue growth of 23.0% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bull Case : MH

The strongest argument for MH centers on EPS Growth, Price/Book, Operating Margin.

Bear Case : EDU

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

Bear Case : MH

The primary concerns for MH are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 4.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

EDU is growing revenue faster at 23.0% — sustainability is the question.

EDU generates stronger free cash flow (420M), providing more financial flexibility.

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

Bottom Line

EDU scores higher overall (64/100 vs 57/100) and 23.0% revenue growth. 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.

McGraw Hill, Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.

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