WallStSmart

Estee Lauder Companies Inc (EL)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Estee Lauder Companies Inc generates 388% more annual revenue ($14.67B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs -1.2%. TAL appears more attractively valued with a PEG of 0.43. TAL earns a higher WallStSmart Score of 74/100 (B).

EL

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 7.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.68

TAL

Strong Buy

74

out of 100

Grade: B

Growth: 10.0Profit: 6.5Value: 10.0Quality: 6.0
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ELUndervalued (+35.3%)

Margin of Safety

+35.3%

Fair Value

$162.86

Current Price

$76.71

$86.15 discount

UndervaluedFair: $162.86Overvalued
TALUndervalued (+88.3%)

Margin of Safety

+88.3%

Fair Value

$101.86

Current Price

$11.12

$90.74 discount

UndervaluedFair: $101.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EL1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.02B8/10

Generating 1.0B in free cash flow

TAL5 strengths · Avg: 9.6/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

P/E RatioValuation
11.7x10/10

Attractively priced relative to earnings

Revenue GrowthGrowth
31.5%10/10

Revenue surging 31.5% year-over-year

EPS GrowthGrowth
536.0%10/10

Earnings expanding 536.0% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

EL4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-4.3%2/10

ROE of -4.3% — below average capital efficiency

EPS GrowthGrowth
-51.6%2/10

Earnings declined 51.6%

TAL0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : EL

The strongest argument for EL centers on Free Cash Flow. PEG of 1.43 suggests the stock is reasonably priced for its growth.

Bull Case : TAL

The strongest argument for TAL centers on PEG Ratio, P/E Ratio, Revenue Growth. Profitability is solid with margins at 17.6% and operating margin at 9.0%. Revenue growth of 31.5% demonstrates continued momentum.

Bear Case : EL

The primary concerns for EL are Altman Z-Score, Piotroski F-Score, Return on Equity. Debt-to-equity of 2.74 is elevated, increasing financial risk.

Bear Case : TAL

No major red flags identified for TAL, but monitor valuation.

Key Dynamics to Monitor

EL profiles as a turnaround stock while TAL is a growth play — different risk/reward profiles.

EL carries more volatility with a beta of 1.25 — expect wider price swings.

TAL is growing revenue faster at 31.5% — sustainability is the question.

EL generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

TAL scores higher overall (74/100 vs 43/100), backed by strong 17.6% margins and 31.5% revenue growth. EL offers better value entry with a 35.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Estee Lauder Companies Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.

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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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