WallStSmart

Chegg Inc (CHGG)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 1102% more annual revenue ($3.19B vs $265.51M). TAL leads profitability with a 28.4% profit margin vs -20.0%. CHGG appears more attractively valued with a PEG of 0.12. TAL earns a higher WallStSmart Score of 78/100 (B+).

CHGG

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 3.0Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -4.47

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 CHGG.

TALUndervalued (+89.7%)

Margin of Safety

+89.7%

Fair Value

$114.94

Current Price

$11.75

$103.19 discount

UndervaluedFair: $114.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHGG3 strengths · Avg: 10.0/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

EPS GrowthGrowth
499.6%10/10

Earnings expanding 499.6% YoY

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

CHGG4 concerns · Avg: 2.3/10
Market CapQuality
$81.57M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-70.8%2/10

ROE of -70.8% — below average capital efficiency

Revenue GrowthGrowth
-50.7%2/10

Revenue declined 50.7%

Altman Z-ScoreHealth
-4.472/10

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 : CHGG

The strongest argument for CHGG centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.12 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 : CHGG

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

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Key Dynamics to Monitor

CHGG profiles as a turnaround stock while TAL is a growth play — different risk/reward profiles.

CHGG carries more volatility with a beta of 2.16 — 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 52/100), 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.

Chegg Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Chegg, Inc. operates a direct-to-student learning platform that supports students on their journey from high school to college and their career with tools designed to help them learn course materials, be successful in their classes, and save money. money on required materials. . The company is headquartered in Santa Clara, California.

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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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