WallStSmart

Legacy Education Inc. (LGCY)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 3650% more annual revenue ($2.82B vs $75.11M). LGCY leads profitability with a 11.0% profit margin vs 9.9%. LGCY trades at a lower P/E of 21.6x. TAL earns a higher WallStSmart Score of 68/100 (B-).

LGCY

Buy

58

out of 100

Grade: C

Growth: 10.0Profit: 7.0Value: 8.3Quality: 5.0

TAL

Strong Buy

68

out of 100

Grade: B-

Growth: 5.3Profit: 5.0Value: 10.0Quality: 6.3
Piotroski: 3/9Altman Z: 2.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LGCYUndervalued (+62.6%)

Margin of Safety

+62.6%

Fair Value

$28.08

Current Price

$13.20

$14.88 discount

UndervaluedFair: $28.08Overvalued
TALUndervalued (+47.1%)

Margin of Safety

+47.1%

Fair Value

$22.46

Current Price

$11.30

$11.16 discount

UndervaluedFair: $22.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LGCY3 strengths · Avg: 9.7/10
Revenue GrowthGrowth
40.7%10/10

Revenue surging 40.7% year-over-year

EPS GrowthGrowth
50.0%10/10

Earnings expanding 50.0% YoY

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

TAL3 strengths · Avg: 8.7/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

Areas to Watch

LGCY1 concerns · Avg: 3.0/10
Market CapQuality
$163.47M3/10

Smaller company, higher risk/reward

TAL2 concerns · Avg: 3.0/10
Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : LGCY

The strongest argument for LGCY centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 40.7% demonstrates continued momentum.

Bull Case : TAL

The strongest argument for TAL centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 27.0% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bear Case : LGCY

The primary concerns for LGCY are Market Cap.

Bear Case : TAL

The primary concerns for TAL are Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

LGCY is growing revenue faster at 40.7% — 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

TAL scores higher overall (68/100 vs 58/100) and 27.0% revenue growth. LGCY offers better value entry with a 62.6% 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.

Legacy Education Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Legacy Reserves Inc., an independent energy company, is engaged in the acquisition, development and production of oil and natural gas properties in the United States.

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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