WallStSmart

Educational Development Corporation (EDUC)vsScholastic Corporation (SCHL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Scholastic Corporation generates 6944% more annual revenue ($1.61B vs $22.91M). EDUC leads profitability with a 10.2% profit margin vs 3.9%. SCHL appears more attractively valued with a PEG of 1.80. SCHL earns a higher WallStSmart Score of 55/100 (C).

EDUC

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 3.5Value: 8.0Quality: 9.0
Piotroski: 4/9Altman Z: 4.22

SCHL

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 3.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 2.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUCUndervalued (+52.0%)

Margin of Safety

+52.0%

Fair Value

$2.94

Current Price

$1.39

$1.55 discount

UndervaluedFair: $2.94Overvalued
SCHLUndervalued (+4.0%)

Margin of Safety

+4.0%

Fair Value

$36.79

Current Price

$43.16

$6.37 discount

UndervaluedFair: $36.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDUC5 strengths · Avg: 9.8/10
P/E RatioValuation
5.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
218779.0%10/10

Earnings expanding 218779.0% YoY

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.169/10

Conservative balance sheet, low leverage

SCHL2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
26.9%8/10

Earnings expanding 26.9% YoY

Areas to Watch

EDUC4 concerns · Avg: 3.0/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Market CapQuality
$11.83M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Revenue GrowthGrowth
-37.0%2/10

Revenue declined 37.0%

SCHL4 concerns · Avg: 3.3/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Market CapQuality
$812.17M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : EDUC

The strongest argument for EDUC centers on P/E Ratio, Price/Book, EPS Growth.

Bull Case : SCHL

The strongest argument for SCHL centers on Price/Book, EPS Growth.

Bear Case : EDUC

The primary concerns for EDUC are PEG Ratio, Market Cap, Return on Equity.

Bear Case : SCHL

The primary concerns for SCHL are PEG Ratio, Market Cap, Return on Equity. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

EDUC profiles as a declining stock while SCHL is a value play — different risk/reward profiles.

EDUC carries more volatility with a beta of 1.05 — expect wider price swings.

SCHL is growing revenue faster at -1.9% — sustainability is the question.

EDUC generates stronger free cash flow (-2M), providing more financial flexibility.

Bottom Line

SCHL scores higher overall (55/100 vs 53/100). EDUC offers better value entry with a 52.0% margin of safety. Both earn "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.

Educational Development Corporation

COMMUNICATION SERVICES · PUBLISHING · USA

Educational Development Corporation, a publishing company, is a commercial co-publisher of educational children's books in the United States. The company is headquartered in Tulsa, Oklahoma.

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Scholastic Corporation

COMMUNICATION SERVICES · PUBLISHING · USA

Scholastic Corporation publishes and distributes children's books worldwide. The company is headquartered in New York, New York.

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