WallStSmart

Afya Ltd (AFYA)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Afya Ltd generates 31% more annual revenue ($3.70B vs $2.82B). AFYA leads profitability with a 20.3% profit margin vs 9.9%. AFYA trades at a lower P/E of 9.7x. TAL earns a higher WallStSmart Score of 68/100 (B-).

AFYA

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 8.3Quality: 5.8
Piotroski: 4/9

TAL

Strong Buy

68

out of 100

Grade: B-

Growth: 5.3Profit: 5.0Value: 10.0Quality: 6.3
Piotroski: 3/9Altman Z: 2.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AFYAUndervalued (+68.3%)

Margin of Safety

+68.3%

Fair Value

$48.86

Current Price

$15.16

$33.70 discount

UndervaluedFair: $48.86Overvalued
TALUndervalued (+47.1%)

Margin of Safety

+47.1%

Fair Value

$22.46

Current Price

$11.30

$11.16 discount

UndervaluedFair: $22.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AFYA4 strengths · Avg: 9.8/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
30.4%10/10

Strong operational efficiency at 30.4%

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

TAL3 strengths · Avg: 8.7/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

Areas to Watch

AFYA1 concerns · Avg: 3.0/10
Market CapQuality
$1.37B3/10

Smaller company, higher risk/reward

TAL2 concerns · Avg: 3.0/10
Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AFYA

The strongest argument for AFYA centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 20.3% and operating margin at 30.4%.

Bull Case : TAL

The strongest argument for TAL centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 27.0% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bear Case : AFYA

The primary concerns for AFYA are Market Cap.

Bear Case : TAL

The primary concerns for TAL are Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

AFYA profiles as a mature stock while TAL is a growth play — different risk/reward profiles.

AFYA carries more volatility with a beta of 0.58 — expect wider price swings.

TAL is growing revenue faster at 27.0% — sustainability is the question.

TAL generates stronger free cash flow (816M), providing more financial flexibility.

Bottom Line

TAL scores higher overall (68/100 vs 66/100) and 27.0% revenue growth. AFYA offers better value entry with a 68.3% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Afya Ltd

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Afya Limited, is a medical education group in Brazil. The company is headquartered in Nova Lima, Brazil.

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TAL Education Group

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

TAL Education Group offers K-12 afterschool tutoring services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

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