WallStSmart

Stride Inc (LRN)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 19% more annual revenue ($3.01B vs $2.54B). TAL leads profitability with a 17.6% profit margin vs 12.1%. LRN appears more attractively valued with a PEG of 0.52. TAL earns a higher WallStSmart Score of 66/100 (B-).

LRN

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 7.5Value: 8.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.92

TAL

Strong Buy

66

out of 100

Grade: B-

Growth: 10.0Profit: 6.5Value: 6.7Quality: 6.0
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LRNUndervalued (+15.1%)

Margin of Safety

+15.1%

Fair Value

$101.13

Current Price

$93.08

$8.05 discount

UndervaluedFair: $101.13Overvalued
TALUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$101.06

Current Price

$10.89

$90.17 discount

UndervaluedFair: $101.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LRN6 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

PEG RatioValuation
0.528/10

Growing faster than its price suggests

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

TAL4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
31.5%10/10

Revenue surging 31.5% year-over-year

EPS GrowthGrowth
536.0%10/10

Earnings expanding 536.0% YoY

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

LRN2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

TAL1 concerns · Avg: 2.0/10
PEG RatioValuation
12.622/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : LRN

The strongest argument for LRN centers on Altman Z-Score, Return on Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bull Case : TAL

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

Bear Case : LRN

The primary concerns for LRN are Revenue Growth, EPS Growth.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Key Dynamics to Monitor

LRN profiles as a value stock while TAL is a growth play — different risk/reward profiles.

TAL carries more volatility with a beta of 0.14 — expect wider price swings.

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

TAL generates stronger free cash flow (816M), providing more financial flexibility.

Bottom Line

TAL scores higher overall (66/100 vs 65/100), backed by strong 17.6% margins and 31.5% revenue growth. LRN offers better value entry with a 15.1% 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.

Stride Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Stride, Inc., a technology-based education company, provides its own and third-party online educational services, software systems and curricula to facilitate individualized learning for students primarily in kindergarten through grade 12 (K -12) in the United States and internationally. .

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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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