WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 305% more annual revenue ($5.14B vs $1.27B). STRA leads profitability with a 10.0% profit margin vs 7.4%. STRA appears more attractively valued with a PEG of 0.75. STRA earns a higher WallStSmart Score of 66/100 (B-).

EDU

Buy

62

out of 100

Grade: C+

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

STRA

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 10.0Quality: 6.3
Piotroski: 4/9Altman Z: 3.68
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
STRAUndervalued (+69.5%)

Margin of Safety

+69.5%

Fair Value

$253.19

Current Price

$83.49

$169.70 discount

UndervaluedFair: $253.19Overvalued

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

STRA5 strengths · Avg: 9.2/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
58.1%10/10

Earnings expanding 58.1% YoY

Altman Z-ScoreHealth
3.6810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.758/10

Growing faster than its price suggests

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Areas to Watch

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

7.4% margin — thin

STRA3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Market CapQuality
$1.90B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

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 : STRA

The strongest argument for STRA centers on Price/Book, EPS Growth, Altman Z-Score. PEG of 0.75 suggests the stock is reasonably priced for its growth.

Bear Case : EDU

The primary concerns for EDU are Profit Margin.

Bear Case : STRA

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

Key Dynamics to Monitor

STRA carries more volatility with a beta of 0.56 — expect wider price swings.

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

EDU generates stronger free cash flow (516M), providing more financial flexibility.

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

Bottom Line

STRA scores higher overall (66/100 vs 62/100). 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.

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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