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EDU vs SFM

EDU
New Oriental Education & Technology Group Inc.
BULLISH
Price
$51.70
Market Cap
$8.62B
Sector
Consumer Defensive
AI Confidence
75%
SFM
Sprouts Farmers Market, Inc.
NEUTRAL
Price
$74.15
Market Cap
$7.01B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
EDU
19.15
SFM
13.96
Forward P/E
EDU
12.31
SFM
12.6
P/B Ratio
EDU
2.11
SFM
5.07
P/S Ratio
EDU
1.6
SFM
0.8
EV/EBITDA
EDU
99.26
SFM
10.31

Profitability

Gross Margin
EDU
54.96%
SFM
39.03%
Operating Margin
EDU
12.72%
SFM
5.73%
Profit Margin
EDU
7.82%
SFM
5.95%
ROE
EDU
10.84%
SFM
38.44%
ROA
EDU
4.85%
SFM
11.0%

Growth

Revenue Growth
EDU
19.8%
SFM
7.6%
Earnings Growth
EDU
60.0%
SFM
18.4%

Financial Health

Debt/Equity
EDU
0.18
SFM
1.39
Current Ratio
EDU
1.66
SFM
0.93
Quick Ratio
EDU
1.48
SFM
0.41

Dividends

Dividend Yield
EDU
2.32%
SFM
--
Payout Ratio
EDU
22.22%
SFM
0.0%

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
SFM NEUTRAL

SFM presents a stark divergence between strong fundamental profitability and severe technical decay. While the Piotroski F-Score of 6/9 indicates stable financial health and the ROE of 38.44% is exceptional, the stock has plummeted 53.7% over the last year. Valuation metrics (P/E 13.96, PEG 1.02) suggest the company is significantly undervalued relative to its growth, but liquidity concerns (Current Ratio 0.93) and aggressive insider selling temper the bullish case.

Strengths
Exceptional Return on Equity (ROE) of 38.44%
Attractive valuation with a PEG ratio of 1.02
Consistent track record of earnings beats over 25 quarters
Risks
Severe technical breakdown with a -53.7% 1-year price change
Weak short-term liquidity (Quick Ratio of 0.41)
Bearish insider sentiment with 20 sell transactions and 0 buys

Compare Another Pair

EDU vs SFM: Head-to-Head Comparison

This page compares New Oriental Education & Technology Group Inc. (EDU) and Sprouts Farmers Market, Inc. (SFM) 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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