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 $3.5B — 2.4× the size. Stride, Inc. trades at the lower P/E: 10.4× against 20.2×. New Oriental Education & Technology Group, Inc. grew revenue faster over the last twelve months: 15.5% against 4.69%. Stride, Inc. has the higher net margin (13.4% vs 8.39%) and the higher return on invested capital (24.5% vs 0.00%). Across the 22 metrics below, Stride, Inc. leads on 16 and New Oriental Education & Technology Group, Inc. on 6.

Valuation

Metric EDU LRN Education & Training Services median
P/E 20.23 10.43 13.22
P/S 1.70 1.40 0.99
P/B 2.22 2.16 1.62
Price to free cash flow 97.12 9.94 10.06
EV/EBITDA 6.90 5.43 8.56
EV/Sales 0.78 1.25 0.78
Earnings yield 4.94% 9.59% 3.17%
Free cash flow yield 1.03% 10.06% 2.81%

Profitability

Metric EDU LRN Education & Training Services median
Gross margin 54.64% 37.75% 54.64%
Operating margin 11.36% 17.90% 0.00%
Net margin 8.39% 13.43% 2.98%
Free cash flow margin 1.75% 14.10% 0.00%
Return on equity 11.68% 21.74% 0.00%
Return on assets 5.73% 14.30% 0.00%
Return on invested capital 0.00% 24.52% 0.00%

Growth

Metric EDU LRN Education & Training Services median
Revenue growth (TTM) 15.53% 4.69% 6.97%
EPS growth (last fiscal year) 30.26% 20.00% 15.68%
Revenue growth, 5-year CAGR 5.77% 10.38% 4.27%
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 0.29 0.05
Current ratio 1.50 5.94 1.33
Net debt to EBITDA (6.44) (0.84) (0.15)

Dividend

Metric EDU LRN Education & Training Services median
Dividend yield 0.99% — 1.84%
Payout ratio 0.20 — 0.23

Size

Metric EDU LRN Education & Training Services median
Market cap 8.44b 3.46b 68.84m

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