New OrientalStride

New Oriental vs Stride

New Oriental and Stride are presented on this page to enable a clear comparison. This page examines their business models, financial performance, and market context, offering neutral, accessible insig...

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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 reported a 13.6% revenue increase in 2025, reaching $4.90 billion, with earnings rising 20.07%, indicating strong financial growth.
  • The company operates a diversified business model across four segments including educational services, e-commerce, overseas consulting, and educational materials.
  • Analysts maintain a generally positive outlook with an average 'Buy' rating and expect about 10% annual revenue growth through 2026, aligning with industry growth rates.

Considerations

  • Despite growth, New Oriental's stock price targets suggest slight declines around 2.9% to 3.6%, reflecting some market caution or valuation concerns.
  • The stock recently missed earnings per share estimates, reporting $1.61 versus consensus of $1.74, which might signal earnings volatility.
  • The company's net margin is modest at approximately 7.36%, and return on equity is relatively moderate at about 10.77%, indicating efficiency challenges.
Stride

Pros

  • Stride operates a unique model offering virtual and hybrid K-12 education programs, leveraging the growing demand for alternative schooling options.
  • The company demonstrates strong financial health with a high quick ratio of 5.28 and interest coverage of over 40, reflecting solid liquidity and low financial risk.
  • Stride shows efficient asset utilization and profitability with a normalized return on assets of 16.2% and return on equity of 26.17%, indicating effective capital management.

Considerations

  • Stride's reliance on contractual agreements with school districts may expose it to regulatory or funding risks tied to public education budgets.
  • Its valuation metrics, including a price-to-book ratio above 4, suggest the stock may be priced for growth, potentially limiting upside in a down market.
  • As a small growth company in a sector with variable policy and competitive risks, Stride faces execution challenges to sustain growth amid changing education dynamics.

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