New Oriental Education & Technology (EDU)vsSunlands Technology Group (STG)
EDU
New Oriental Education & Technology
$45.74
-1.15%
CONSUMER DEFENSIVE · Cap: $7.78B
STG
Sunlands Technology Group
$3.47
+1.76%
CONSUMER DEFENSIVE · Cap: $46.59M
Smart Verdict
WallStSmart Research — data-driven comparison
New Oriental Education & Technology generates 172% more annual revenue ($5.37B vs $1.97B). STG leads profitability with a 18.6% profit margin vs 7.8%. STG trades at a lower P/E of 0.9x. EDU earns a higher WallStSmart Score of 69/100 (B-).
EDU
Strong Buy69
out of 100
Grade: B-
STG
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.9%
Fair Value
$339.19
Current Price
$45.74
$293.45 discount
Intrinsic value data unavailable for STG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.0% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
19.8% revenue growth
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 36 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 22.0%
Areas to Watch
7.8% margin — thin
Negative free cash flow — burning cash
3.2% earnings growth
Smaller company, higher risk/reward
Revenue declined 9.6%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : STG
The strongest argument for STG centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 18.6% and operating margin at 22.0%.
Bear Case : EDU
The primary concerns for EDU are Profit Margin, Free Cash Flow.
Bear Case : STG
The primary concerns for STG are EPS Growth, Market Cap, Revenue Growth.
Key Dynamics to Monitor
EDU profiles as a growth stock while STG is a declining play — different risk/reward profiles.
STG carries more volatility with a beta of 1.42 — expect wider price swings.
EDU is growing revenue faster at 19.8% — sustainability is the question.
STG generates stronger free cash flow (143M), providing more financial flexibility.
Bottom Line
EDU scores higher overall (69/100 vs 57/100) and 19.8% revenue growth. 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.
Sunlands Technology Group
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
Sunlands Technology Group, provides online education services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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