WallStSmart

Strategic Education Inc (STRA)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 122% more annual revenue ($2.82B vs $1.27B). STRA leads profitability with a 10.0% profit margin vs 9.9%. TAL appears more attractively valued with a PEG of 0.46. TAL earns a higher WallStSmart Score of 68/100 (B-).

STRA

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 6.0Value: 10.0Quality: 6.3
Piotroski: 4/9Altman Z: 3.68

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

STRAUndervalued (+69.5%)

Margin of Safety

+69.5%

Fair Value

$253.19

Current Price

$83.49

$169.70 discount

UndervaluedFair: $253.19Overvalued
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

STRA5 strengths · Avg: 9.2/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
58.1%10/10

Earnings expanding 58.1% YoY

Altman Z-ScoreHealth
3.6810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.758/10

Growing faster than its price suggests

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

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

STRA3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Market CapQuality
$1.90B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

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 : STRA

The strongest argument for STRA centers on Price/Book, EPS Growth, Altman Z-Score. PEG of 0.75 suggests the stock is reasonably priced for its growth.

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 : STRA

The primary concerns for STRA are Revenue Growth, Market Cap, Return on Equity.

Bear Case : TAL

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

Key Dynamics to Monitor

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

STRA carries more volatility with a beta of 0.56 — expect wider price swings.

TAL is growing revenue faster at 27.0% — sustainability is the question.

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

Bottom Line

TAL scores higher overall (68/100 vs 66/100) and 27.0% revenue growth. STRA offers better value entry with a 69.5% 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.

Strategic Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Strategic Education, Inc., offers postsecondary education and non-degree programs. The company is headquartered in Herndon, Virginia.

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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