New Oriental Education & Technology Group, Inc. (EDU) vs Stride, Inc. (LRN)

New Oriental Education & Technology Group, Inc. and Stride, Inc. are both Education & Training Services companies. New Oriental Education & Technology Group, Inc. is the larger, with a market value of $8.4B against $3.2B — 2.7× the size. Stride, Inc. trades at the lower P/E: 9.5× against 16.3×. New Oriental Education & Technology Group, Inc. grew revenue faster over the last twelve months: 20.6% against 2.48%. Stride, Inc. has the higher net margin (13.2% vs 8.44%) and the higher return on invested capital (20.7% vs 0.00%). Across the 22 metrics below, Stride, Inc. leads on 14 and New Oriental Education & Technology Group, Inc. on 8.

Valuation

Metric EDU LRN Education & Training Services median
P/E 16.31 9.51 12.09
P/S 1.39 1.23 0.80
P/B 1.94 1.86 1.39
Price to free cash flow 82.16 7.36 7.31
EV/EBITDA 4.49 4.75 6.36
EV/Sales 0.53 1.12 0.58
Earnings yield 6.13% 10.52% 3.29%
Free cash flow yield 1.22% 13.59% 3.03%

Profitability

Metric EDU LRN Education & Training Services median
Gross margin 54.31% 37.44% 55.03%
Operating margin 11.76% 18.37% 0.00%
Net margin 8.44% 13.18% 1.77%
Free cash flow margin 17.13% 16.68% 0.00%
Return on equity 0.00% 20.90% 0.00%
Return on assets 6.02% 13.75% 0.00%
Return on invested capital 0.00% 20.72% 0.00%

Growth

Metric EDU LRN Education & Training Services median
Revenue growth (TTM) 20.55% 2.48% 5.84%
EPS growth (last fiscal year) 30.26% 20.00% 14.71%
Revenue growth, 5-year CAGR 5.77% 10.38% 4.24%
Net income growth, 5-year CAGR 7.28% 36.47% 0.00%

Health

Metric EDU LRN Education & Training Services median
Debt to equity 0.00 0.31 0.05
Current ratio 1.61 2.56 1.37
Net debt to EBITDA (6.44) (0.84) (0.04)

Dividend

Metric EDU LRN Education & Training Services median
Dividend yield 1.11% — 2.64%
Payout ratio 0.18 — 0.26

Size

Metric EDU LRN Education & Training Services median
Market cap 8.37b 3.15b 59.54m

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