WallStSmart

Sunlands Technology Group (STG)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 73% more annual revenue ($3.19B vs $1.84B). TAL leads profitability with a 28.4% profit margin vs 17.6%. STG trades at a lower P/E of 0.8x. TAL earns a higher WallStSmart Score of 78/100 (B+).

STG

Buy

58

out of 100

Grade: C

Growth: 2.0Profit: 8.5Value: 6.7Quality: 7.0
Piotroski: 7/9Altman Z: 1.27

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

Intrinsic value data unavailable for STG.

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

STG5 strengths · Avg: 9.4/10
P/E RatioValuation
0.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Return on EquityProfitability
36.4%10/10

Every $100 of equity generates 36 in profit

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.5%8/10

Strong operational efficiency at 20.5%

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

STG4 concerns · Avg: 2.3/10
Market CapQuality
$36.40M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-24.6%2/10

Revenue declined 24.6%

EPS GrowthGrowth
-32.9%2/10

Earnings declined 32.9%

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

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

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : STG

The strongest argument for STG centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 17.6% and operating margin at 20.5%.

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 : STG

The primary concerns for STG are Market Cap, Revenue Growth, EPS Growth.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Key Dynamics to Monitor

STG profiles as a declining stock while TAL is a growth play — different risk/reward profiles.

STG carries more volatility with a beta of 1.56 — 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 58/100), backed by strong 28.4% margins and 31.9% revenue growth. 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.

Sunlands Technology Group

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

Sunlands Technology Group, provides online education services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.

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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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