New Oriental Education & Technology (EDU)vsTAL Education Group (TAL)
EDU
New Oriental Education & Technology
$55.64
+0.18%
CONSUMER DEFENSIVE · Cap: $9.92B
TAL
TAL Education Group
$11.81
+0.94%
CONSUMER DEFENSIVE · Cap: $6.88B
Smart Verdict
WallStSmart Research — data-driven comparison
New Oriental Education & Technology generates 77% more annual revenue ($5.66B vs $3.19B). TAL leads profitability with a 28.4% profit margin vs 8.4%. EDU appears more attractively valued with a PEG of 1.01. TAL earns a higher WallStSmart Score of 78/100 (B+).
EDU
Buy64
out of 100
Grade: C+
TAL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.5%
Fair Value
$349.01
Current Price
$55.64
$293.37 discount
Margin of Safety
+89.7%
Fair Value
$114.94
Current Price
$11.81
$103.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 791.0% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Revenue surging 23.0% year-over-year
Attractively priced relative to earnings
Revenue surging 31.9% year-over-year
Earnings expanding 1360.0% YoY
Conservative balance sheet, low leverage
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
No major concerns identified
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : EDU
The strongest argument for EDU centers on EPS Growth, Debt/Equity, Price/Book. Revenue growth of 23.0% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bull Case : TAL
The strongest argument for TAL centers on P/E Ratio, Revenue Growth, EPS Growth. Profitability is solid with margins at 28.4% and operating margin at 18.1%. Revenue growth of 31.9% demonstrates continued momentum.
Bear Case : EDU
No major red flags identified for EDU, but monitor valuation.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
EDU carries more volatility with a beta of 0.23 — expect wider price swings.
TAL is growing revenue faster at 31.9% — sustainability is the question.
TAL generates stronger free cash flow (478M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TAL scores higher overall (78/100 vs 64/100), backed by strong 28.4% margins and 31.9% revenue growth. EDU offers better value entry with a 82.5% margin of safety. Both earn "Strong Buy" and "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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