New OrientalPerdoceo Education

New Oriental vs Perdoceo Education

This page compares New Oriental Education & Tech Group Inc and Perdoceo Education Corp, examining their business models, financial performance, and market context in a neutral, accessible way. It outl...

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Knowledge & Skills Economy

Knowledge & Skills Economy

Tap into the growing market for lifelong learning and professional development. These carefully selected companies are at the forefront of educational innovation, from digital platforms to specialized training services. Our analysts have identified the leaders in this expanding sector.

Published: June 17, 2025

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Knowledge Economy Builders

Knowledge Economy Builders

Discover companies shaping the future of education and professional development. These carefully selected stocks represent institutions and platforms creating the intellectual capital essential for tomorrow's workforce, curated by our investment experts.

Published: June 17, 2025

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Investment Analysis

New Oriental

Pros

  • New Oriental delivered double-digit revenue and earnings growth in 2025, outpacing its five-year historical average and signalling resilient demand in Chinese private education.
  • The company has diversified into livestreaming e-commerce and private label products, reducing reliance on traditional tutoring and tapping into higher-margin digital channels.
  • Analyst forecasts project continued mid-teens earnings growth into 2026, supported by policy easing and a recovery in core exam preparation and overseas consulting services.

Considerations

  • Recent quarterly earnings per share missed consensus estimates, indicating potential volatility in execution or higher-than-expected costs in new business lines.
  • The stock trades at a premium valuation relative to historical levels, with a forward PE above 18, raising questions about further multiple expansion.
  • Exposure to evolving Chinese education regulations and potential sudden policy shifts remains a persistent risk for operations and investor sentiment.
Perdoceo Education

Pros

  • Perdoceo Education has consistently demonstrated strong free cash flow generation, supporting ongoing share repurchases and a solid balance sheet with low debt.
  • The company’s portfolio of accredited online institutions positions it to benefit from structural growth in demand for flexible, career-oriented higher education in the US.
  • Perdoceo’s focus on cost discipline and operational efficiency has led to industry-leading margins and steady improvement in return on invested capital.

Considerations

  • Enrolment trends in US for-profit higher education remain sensitive to macroeconomic conditions and competitive intensity from non-profit and public sector alternatives.
  • Regulatory scrutiny of for-profit education providers in the US could lead to increased compliance costs or restrictions on marketing and recruitment practices.
  • The company’s growth rate has lagged behind some peers, reflecting market saturation in core segments and limited diversification beyond traditional degree programmes.

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