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EDU vs PG

EDU
New Oriental Education & Technology Group Inc.
BULLISH
Price
$51.70
Market Cap
$8.62B
Sector
Consumer Defensive
AI Confidence
75%
PG
The Procter & Gamble Company
BEARISH
Price
$145.71
Market Cap
$340.49B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
EDU
19.15
PG
21.59
Forward P/E
EDU
12.31
PG
20.23
P/B Ratio
EDU
2.11
PG
6.48
P/S Ratio
EDU
1.6
PG
3.99
EV/EBITDA
EDU
99.26
PG
14.76

Profitability

Gross Margin
EDU
54.96%
PG
51.19%
Operating Margin
EDU
12.72%
PG
26.3%
Profit Margin
EDU
7.82%
PG
19.3%
ROE
EDU
10.84%
PG
31.56%
ROA
EDU
4.85%
PG
10.9%

Growth

Revenue Growth
EDU
19.8%
PG
1.5%
Earnings Growth
EDU
60.0%
PG
-5.4%

Financial Health

Debt/Equity
EDU
0.18
PG
0.69
Current Ratio
EDU
1.66
PG
0.72
Quick Ratio
EDU
1.48
PG
0.47

Dividends

Dividend Yield
EDU
2.32%
PG
2.92%
Payout Ratio
EDU
22.22%
PG
61.88%

AI Verdict

EDU BULLISH

EDU presents a stable financial profile with a Piotroski F-Score of 4/9 and a strong balance sheet characterized by very low leverage (Debt/Equity 0.18). While the current price of $51.70 sits above the defensive Graham Number ($38.54), it remains significantly below the growth-based intrinsic value of $79.65. The company is exhibiting powerful growth momentum with 60% YoY earnings growth and a PEG ratio of 0.89, suggesting undervaluation relative to its expansion. However, a severe technical breakdown (0/100 trend) and recent price volatility create a divergence between fundamental value and market sentiment.

Strengths
Exceptional earnings growth (60% YoY) and revenue growth (19.8% YoY)
Very low leverage with a Debt/Equity ratio of 0.18
Attractive valuation relative to growth (PEG Ratio 0.89)
Risks
Extreme bearish technical trend (0/100) indicating strong short-term selling pressure
High historical earnings volatility with significant past misses
Regulatory risks inherent to the Chinese education sector
PG BEARISH

PG exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but it is severely overvalued relative to its deterministic baselines. The current price of $145.71 represents a massive premium over the Graham Number ($58.45) and Intrinsic Value ($47.25), while a PEG ratio of 3.92 indicates the valuation is disconnected from its stagnant growth. Negative earnings growth (-5.40% YoY) combined with bearish insider activity and a 0/100 technical trend suggests significant downside risk despite the company's operational efficiency.

Strengths
Exceptional Return on Equity (ROE) of 31.56%
Strong gross margins (51.19%) and operating margins (26.30%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Extreme valuation premium over Graham and Intrinsic value estimates
Negative earnings growth (-5.40% YoY and -6.70% Q/Q)
Weak liquidity ratios with a Current Ratio of 0.72 and Quick Ratio of 0.47

Compare Another Pair

EDU vs PG: Head-to-Head Comparison

This page compares New Oriental Education & Technology Group Inc. (EDU) and The Procter & Gamble Company (PG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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