New Oriental Education & Technology (EDU)vsSunlands Technology Group (STG)
EDU
New Oriental Education & Technology
$56.49
+2.17%
CONSUMER DEFENSIVE · Cap: $9.22B
STG
Sunlands Technology Group
$3.86
-5.39%
CONSUMER DEFENSIVE · Cap: $62.35M
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
Buy62
out of 100
Grade: C+
STG
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.5%
Fair Value
$112.32
Current Price
$56.49
$55.83 discount
Margin of Safety
+97.4%
Fair Value
$194.22
Current Price
$3.86
$190.36 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 45.9% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 53 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.5%
Earnings expanding 42.6% YoY
Areas to Watch
7.4% margin — thin
Smaller company, higher risk/reward
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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.
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