WallStSmart

New Oriental Education & Technology (EDU)vsTAL Education Group (TAL)

VS

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 0.97. TAL earns a higher WallStSmart Score of 76/100 (B+).

EDU

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 6.0Value: 8.0Quality: 8.0
Piotroski: 6/9Altman Z: 2.06

TAL

Strong Buy

76

out of 100

Grade: B+

Growth: 10.0Profit: 7.5Value: 7.3Quality: 8.0
Piotroski: 5/9Altman Z: 2.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EDUUndervalued (+82.6%)

Margin of Safety

+82.6%

Fair Value

$352.45

Current Price

$59.06

$293.39 discount

UndervaluedFair: $352.45Overvalued
TALUndervalued (+89.8%)

Margin of Safety

+89.8%

Fair Value

$116.27

Current Price

$11.99

$104.28 discount

UndervaluedFair: $116.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDU5 strengths · Avg: 8.6/10
EPS GrowthGrowth
791.0%10/10

Earnings expanding 791.0% YoY

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

TAL6 strengths · Avg: 9.3/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Revenue GrowthGrowth
31.9%10/10

Revenue surging 31.9% year-over-year

EPS GrowthGrowth
1360.0%10/10

Earnings expanding 1360.0% YoY

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

EDU1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-76.25M2/10

Negative free cash flow — burning cash

TAL2 concerns · Avg: 2.0/10
PEG RatioValuation
13.072/10

Expensive relative to growth rate

Free Cash FlowQuality
$-429.09M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : EDU

The strongest argument for EDU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.97 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

The primary concerns for EDU are Free Cash Flow.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio, Free Cash Flow.

Key Dynamics to Monitor

EDU carries more volatility with a beta of 0.18 — expect wider price swings.

TAL is growing revenue faster at 31.9% — sustainability is the question.

EDU generates stronger free cash flow (-76M), providing more financial flexibility.

Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TAL scores higher overall (76/100 vs 66/100), backed by strong 28.4% margins and 31.9% revenue growth. EDU offers better value entry with a 82.6% 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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