New Oriental Education & Technology (EDU)vsTAL Education Group (TAL)
EDU
New Oriental Education & Technology
$54.98
-3.32%
CONSUMER DEFENSIVE · Cap: $9.05B
TAL
TAL Education Group
$11.43
+0.35%
CONSUMER DEFENSIVE · Cap: $6.80B
Smart Verdict
WallStSmart Research — data-driven comparison
New Oriental Education & Technology generates 83% more annual revenue ($5.14B vs $2.82B). TAL leads profitability with a 9.9% profit margin vs 7.4%. TAL appears more attractively valued with a PEG of 0.45. TAL earns a higher WallStSmart Score of 68/100 (B-).
EDU
Buy62
out of 100
Grade: C+
TAL
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.5%
Fair Value
$112.32
Current Price
$54.98
$57.34 discount
Margin of Safety
+47.1%
Fair Value
$22.46
Current Price
$11.43
$11.03 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 45.9% YoY
Growing faster than its price suggests
Earnings expanding 536.0% YoY
Reasonable price relative to book value
Revenue surging 27.0% year-over-year
Areas to Watch
7.4% margin — thin
ROE of 7.7% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EDU
The strongest argument for EDU centers on PEG Ratio, Price/Book, EPS Growth. Revenue growth of 14.7% demonstrates continued momentum. PEG of 0.91 suggests the stock is reasonably priced for its growth.
Bull Case : TAL
The strongest argument for TAL centers on PEG Ratio, EPS Growth, Price/Book. Revenue growth of 27.0% demonstrates continued momentum. PEG of 0.45 suggests the stock is reasonably priced for its growth.
Bear Case : EDU
The primary concerns for EDU are Profit Margin.
Bear Case : TAL
The primary concerns for TAL are Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
EDU profiles as a value stock while TAL is a growth play — different risk/reward profiles.
EDU carries more volatility with a beta of 0.34 — 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 62/100) and 27.0% revenue growth. EDU offers better value entry with a 45.5% 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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