WallStSmart

New Oriental Education & Technology (EDU)vsTCTM Kids IT Education Inc. (VSA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

New Oriental Education & Technology generates 517216% more annual revenue ($5.37B vs $1.04M). VSA leads profitability with a 165437.0% profit margin vs 7.8%. VSA appears more attractively valued with a PEG of 0.33. 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

VSA

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 4.0Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: -1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$336.88

Current Price

$47.08

$289.81 discount

UndervaluedFair: $336.88Overvalued

Intrinsic value data unavailable for VSA.

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
0.778/10

Growing faster than its price suggests

P/E RatioValuation
16.6x8/10

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

VSA3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

Price/BookValuation
0.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
165437.0%10/10

Keeps 165437 of every $100 in revenue as profit

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

VSA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$11.45M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-32.6%2/10

ROE of -32.6% — below average capital efficiency

Revenue GrowthGrowth
-84.5%2/10

Revenue declined 84.5%

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 0.77 suggests the stock is reasonably priced for its growth.

Bull Case : VSA

The strongest argument for VSA centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 165437.0% and operating margin at -1825.0%. PEG of 0.33 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 : VSA

The primary concerns for VSA are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

EDU profiles as a growth stock while VSA is a declining play — different risk/reward profiles.

VSA carries more volatility with a beta of 0.47 — expect wider price swings.

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

EDU generates stronger free cash flow (-7M), providing more financial flexibility.

Bottom Line

EDU scores higher overall (69/100 vs 42/100) and 19.8% revenue growth. Both earn "Strong Buy" and "Hold" 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.

TCTM Kids IT Education Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

TCTM Kids IT Education Inc., engages in the provision of IT-focused education services in Mainland China. The company is headquartered in Beijing, the People's Republic of China.

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