New Oriental Education & Technology (EDU)vsTAL Education Group (TAL)
EDU
New Oriental Education & Technology
$53.14
-1.26%
CONSUMER DEFENSIVE · Cap: $8.97B
TAL
TAL Education Group
$10.89
-2.51%
CONSUMER DEFENSIVE · Cap: $6.80B
Smart Verdict
WallStSmart Research — data-driven comparison
New Oriental Education & Technology generates 79% more annual revenue ($5.37B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs 7.8%. EDU appears more attractively valued with a PEG of 0.92. TAL earns a higher WallStSmart Score of 66/100 (B-).
EDU
Strong Buy66
out of 100
Grade: B-
TAL
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.6%
Fair Value
$351.66
Current Price
$53.14
$298.52 discount
Margin of Safety
+88.2%
Fair Value
$101.06
Current Price
$10.89
$90.17 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.0% YoY
Growing faster than its price suggests
Reasonable price relative to book value
19.8% revenue growth
Revenue surging 31.5% year-over-year
Earnings expanding 536.0% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
7.8% margin — thin
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : EDU
The strongest argument for EDU centers on EPS Growth, PEG Ratio, Price/Book. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bull Case : TAL
The strongest argument for TAL centers on Revenue Growth, EPS Growth, P/E Ratio. Profitability is solid with margins at 17.6% and operating margin at 9.0%. Revenue growth of 31.5% demonstrates continued momentum.
Bear Case : EDU
The primary concerns for EDU are Profit Margin, Free Cash Flow.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
EDU carries more volatility with a beta of 0.32 — expect wider price swings.
TAL is growing revenue faster at 31.5% — sustainability is the question.
TAL generates stronger free cash flow (816M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EDU scores higher overall (66/100 vs 66/100) and 19.8% revenue growth. TAL offers better value entry with a 88.2% 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.
New Oriental Education & Technology
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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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