Strategic Education Inc (STRA)vsTAL Education Group (TAL)
STRA
Strategic Education Inc
$77.81
+0.34%
CONSUMER DEFENSIVE · Cap: $1.72B
TAL
TAL Education Group
$10.14
+0.80%
CONSUMER DEFENSIVE · Cap: $5.58B
Smart Verdict
WallStSmart Research — data-driven comparison
TAL Education Group generates 148% more annual revenue ($3.19B vs $1.29B). TAL leads profitability with a 28.4% profit margin vs 10.5%. STRA appears more attractively valued with a PEG of 0.65. TAL earns a higher WallStSmart Score of 80/100 (A-).
STRA
Strong Buy66
out of 100
Grade: B-
TAL
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.4%
Fair Value
$269.86
Current Price
$77.81
$192.05 discount
Margin of Safety
+89.5%
Fair Value
$113.21
Current Price
$10.14
$103.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 24.8% YoY
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
4.9% revenue growth
Smaller company, higher risk/reward
ROE of 7.9% — below average capital efficiency
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : STRA
The strongest argument for STRA centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.65 suggests the stock is reasonably priced for its growth.
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 : STRA
The primary concerns for STRA are Revenue Growth, Market Cap, Return on Equity.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
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 0.47 — 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 (80/100 vs 66/100), backed by strong 28.4% margins and 31.9% revenue growth. STRA offers better value entry with a 71.4% margin of safety. Both earn "Exceptional 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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