WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 156% more annual revenue ($5.37B vs $2.10B). EDU leads profitability with a 7.8% profit margin vs 1.7%. EDU trades at a lower P/E of 17.3x. EDU earns a higher WallStSmart Score of 69/100 (B-).

EDU

Strong Buy

69

out of 100

Grade: B-

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

MH

Hold

37

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 7/9Altman Z: 0.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+81.9%)

Margin of Safety

+81.9%

Fair Value

$339.19

Current Price

$45.74

$293.45 discount

UndervaluedFair: $339.19Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU6 strengths · Avg: 8.5/10
EPS GrowthGrowth
60.0%10/10

Earnings expanding 60.0% YoY

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.808/10

Growing faster than its price suggests

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

MH0 strengths · Avg: 0/10

No standout strengths identified

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

MH4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

P/E RatioValuation
61.9x2/10

Premium valuation, high expectations priced in

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, PEG Ratio. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bull Case : MH

MH has a balanced fundamental profile.

Bear Case : EDU

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

Bear Case : MH

The primary concerns for MH are EPS Growth, Profit Margin, P/E Ratio. A P/E of 61.9x leaves little room for execution misses. Debt-to-equity of 3.47 is elevated, increasing financial risk.

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 19.8% — sustainability is the question.

MH generates stronger free cash flow (308M), providing more financial flexibility.

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

Bottom Line

EDU scores higher overall (69/100 vs 37/100) and 19.8% revenue growth. Both earn "Strong Buy" and "Hold" 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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