WallStSmart

Stride Inc (LRN)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 27% more annual revenue ($3.19B vs $2.52B). TAL leads profitability with a 28.4% profit margin vs 13.4%. LRN appears more attractively valued with a PEG of 0.46. TAL earns a higher WallStSmart Score of 78/100 (B+).

LRN

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 8.7Quality: 8.5
Piotroski: 4/9Altman Z: 4.25

TAL

Strong Buy

78

out of 100

Grade: B+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LRNUndervalued (+6.9%)

Margin of Safety

+6.9%

Fair Value

$88.16

Current Price

$78.90

$9.26 discount

UndervaluedFair: $88.16Overvalued
TALUndervalued (+89.7%)

Margin of Safety

+89.7%

Fair Value

$114.94

Current Price

$11.81

$103.13 discount

UndervaluedFair: $114.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LRN5 strengths · Avg: 9.6/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
69.6%10/10

Earnings expanding 69.6% YoY

Altman Z-ScoreHealth
4.2510/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

TAL6 strengths · Avg: 9.5/10
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

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

LRN1 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-2.7%2/10

Revenue declined 2.7%

TAL1 concerns · Avg: 2.0/10
PEG RatioValuation
2.792/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : LRN

The strongest argument for LRN centers on PEG Ratio, P/E Ratio, EPS Growth. PEG of 0.46 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 : LRN

The primary concerns for LRN are Revenue Growth.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Key Dynamics to Monitor

LRN profiles as a declining 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 31.9% — sustainability is the question.

TAL generates stronger free cash flow (478M), providing more financial flexibility.

Bottom Line

TAL scores higher overall (78/100 vs 71/100), backed by strong 28.4% margins and 31.9% revenue growth. 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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