New Oriental vs Afya

This page compares New Oriental Education & Tech Group Inc and Afya Ltd, outlining each company’s business model, financial performance, and market context to present a neutral view of how they operate as listed entities. It helps readers gauge relative scale, strategy, and sector dynamics without offering guidance. Educational content, not financial advice.

This page compares New Oriental Education & Tech Group Inc and Afya Ltd, outlining each company’s business model, financial performance, and market context to present a neutral view of how they operat...

Comparison Snapshot

Key Financial Metrics

EDU

Metric

AFYA

$9.28B

Market Cap

$1.28B

17.34%

Potential Profit

30.38%

Buy

Analyst Rating

Buy

Investment Analysis

New Oriental

EDU

Pros

Revenue grew 13.6% year-on-year in 2025, reflecting strong demand for private education services in China.
The company maintains a low beta, indicating relatively stable stock performance compared to the broader market.
Expansion into livestreaming e-commerce and private label products diversifies revenue streams beyond traditional education.

Considerations

Net profit margin remains modest at around 7.4%, limiting profitability despite revenue growth.
Stock valuation is relatively high, with a trailing P/E above 25, which may limit upside if growth slows.
Regulatory risks persist in China's education sector, potentially affecting future expansion and profitability.

Afya

AFYA

Pros

Afya operates a diversified portfolio of medical and health-related education programmes in Brazil, supporting stable demand.
The company maintains a healthy balance sheet with a current ratio above 1.4, indicating solid short-term liquidity.
Valuation metrics are attractive, with a P/E ratio below 11 and a price-to-sales ratio of 2.6, suggesting relative value.

Considerations

Interest coverage is relatively low at 2.76, raising concerns about debt servicing capacity if rates rise.
The business is exposed to Brazilian economic volatility, including currency and regulatory risks.
Growth in the Brazilian education sector may be constrained by macroeconomic challenges and limited per capita spending.

About The Companies

New Oriental (EDU)

New Oriental Education & Tech Group (EDU) is a China-based provider of private educational services, known for test preparation, K–12 tutoring, language training and online learning platforms. Listed as an ADR, it has diversified beyond traditional after-school tutoring into online courses, adult vocational training, overseas study services and early-years education. Investors should note the company's exposure to China-specific policy risk — major regulatory changes since 2021 reshaped the tutoring market and prompted strategic pivots. Growth drivers include rising digital adoption, international demand for language and test-prep services, and expansion into new education segments; however, revenues can be cyclical and sensitive to regulation, competition and macro conditions. With a market capitalisation around $10.3bn, EDU may offer recovery and transformation potential but also carries elevated volatility. This summary is for general educational purposes only and not personalised investment advice; always consider your own objectives and seek professional guidance.

Afya (AFYA)

Afya Ltd is a prominent Brazilian company specialising in the education sector, with a primary focus on medical and health sciences. It operates a network of medical schools across the country, offering a wide array of courses including medicine, dentistry, nursing, and pharmacy. Beyond healthcare, Afya also provides undergraduate and postgraduate degrees in fields like business administration, law, and engineering. The company distinguishes itself with a modern, technology-enabled approach to learning, aiming for a personalised experience that mimics one-on-one tutoring through integrated content and interactive activities. This combination of a specialised, high-demand educational focus and an innovative delivery model makes it a notable name in Latin America's education landscape. As with any investment, its value can go down as well as up.

Which Baskets Do They Appear In?

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

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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Which Baskets Do They Appear In?

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

Explore Basket

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

Explore Basket

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Comparison Snapshot