McGraw Hill, Inc. (MH)vsTAL Education Group (TAL)
MH
McGraw Hill, Inc.
$13.66
-3.12%
CONSUMER DEFENSIVE · Cap: $2.67B
TAL
TAL Education Group
$10.06
-1.47%
CONSUMER DEFENSIVE · Cap: $5.58B
Smart Verdict
WallStSmart Research — data-driven comparison
TAL Education Group generates 51% more annual revenue ($3.19B vs $2.12B). TAL leads profitability with a 28.4% profit margin vs 4.4%. TAL trades at a lower P/E of 6.4x. TAL earns a higher WallStSmart Score of 80/100 (A-).
MH
Buy57
out of 100
Grade: C
TAL
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MH.
Margin of Safety
+89.5%
Fair Value
$113.21
Current Price
$10.06
$103.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 9860.0% YoY
Strong operational efficiency at 21.5%
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 31.9% year-over-year
Earnings expanding 1360.0% YoY
Conservative balance sheet, low leverage
Keeps 28 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
2.6% revenue growth
4.4% margin — thin
ROE of -9.2% — below average capital efficiency
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : MH
The strongest argument for MH centers on EPS Growth, Operating Margin.
Bull Case : TAL
The strongest argument for TAL centers on P/E Ratio, Price/Book, Revenue 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 : MH
The primary concerns for MH are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 4.4% margins leave little buffer for downturns.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
MH profiles as a value stock while TAL is a growth play — different risk/reward profiles.
TAL is growing revenue faster at 31.9% — sustainability is the question.
TAL generates stronger free cash flow (478M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TAL scores higher overall (80/100 vs 57/100), backed by strong 28.4% margins and 31.9% revenue growth. Both earn "Exceptional 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.
McGraw Hill, Inc.
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.
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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