WallStSmart

New Oriental Education & Technology (EDU)vsSunlands Technology Group (STG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 153% more annual revenue ($5.14B vs $2.03B). STG leads profitability with a 18.9% profit margin vs 7.4%. STG trades at a lower P/E of 1.1x. STG earns a higher WallStSmart Score of 69/100 (B-).

EDU

Buy

62

out of 100

Grade: C+

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

STG

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 9.0Value: 8.3Quality: 6.0
Piotroski: 6/9Altman Z: 0.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$112.32

Current Price

$56.49

$55.83 discount

UndervaluedFair: $112.32Overvalued
STGUndervalued (+97.4%)

Margin of Safety

+97.4%

Fair Value

$194.22

Current Price

$3.86

$190.36 discount

UndervaluedFair: $194.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU3 strengths · Avg: 8.0/10
PEG RatioValuation
0.928/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
45.9%8/10

Earnings expanding 45.9% YoY

STG6 strengths · Avg: 9.2/10
P/E RatioValuation
1.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
52.8%10/10

Every $100 of equity generates 53 in profit

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.5%8/10

Strong operational efficiency at 26.5%

EPS GrowthGrowth
42.6%8/10

Earnings expanding 42.6% YoY

Areas to Watch

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

7.4% margin — thin

STG2 concerns · Avg: 2.5/10
Market CapQuality
$62.35M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

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 0.92 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 18.9% and operating margin at 26.5%.

Bear Case : EDU

The primary concerns for EDU are Profit Margin.

Bear Case : STG

The primary concerns for STG are Market Cap, Altman Z-Score.

Key Dynamics to Monitor

EDU profiles as a value stock while STG is a mature play — different risk/reward profiles.

STG carries more volatility with a beta of 1.13 — expect wider price swings.

EDU is growing revenue faster at 14.7% — sustainability is the question.

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

Bottom Line

STG scores higher overall (69/100 vs 62/100), backed by strong 18.9% margins. 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.

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.

Visit Website →

Want to dig deeper into these stocks?