WallStSmart

New Oriental Education & Technology (EDU)vsStrategic Education Inc (STRA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 323% more annual revenue ($5.37B vs $1.27B). STRA leads profitability with a 10.2% profit margin vs 7.8%. STRA appears more attractively valued with a PEG of 0.69. 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

STRA

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 8.7Quality: 7.5
Piotroski: 5/9Altman Z: 3.64
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
STRAUndervalued (+71.6%)

Margin of Safety

+71.6%

Fair Value

$271.70

Current Price

$81.58

$190.12 discount

UndervaluedFair: $271.70Overvalued

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

STRA5 strengths · Avg: 9.2/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.698/10

Growing faster than its price suggests

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

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

STRA3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Market CapQuality
$1.76B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — 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 : STRA

The strongest argument for STRA centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.69 suggests the stock is reasonably priced for its growth.

Bear Case : EDU

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

Bear Case : STRA

The primary concerns for STRA are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

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

STRA carries more volatility with a beta of 0.50 — expect wider price swings.

EDU is growing revenue faster at 19.8% — sustainability is the question.

STRA generates stronger free cash flow (77M), providing more financial flexibility.

Bottom Line

EDU scores higher overall (69/100 vs 62/100) and 19.8% revenue growth. STRA offers better value entry with a 71.6% 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.

Strategic Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Strategic Education, Inc., offers postsecondary education and non-degree programs. The company is headquartered in Herndon, Virginia.

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