WallStSmart

51Talk Online Education Group (COE)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 2841% more annual revenue ($3.19B vs $108.54M). TAL leads profitability with a 28.4% profit margin vs -16.1%. TAL earns a higher WallStSmart Score of 78/100 (B+).

COE

Hold

45

out of 100

Grade: D+

Growth: 10.0Profit: 2.0Value: 6.0Quality: 4.5
Piotroski: 2/9Altman Z: -7.81

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

COEUndervalued (+18.3%)

Margin of Safety

+18.3%

Fair Value

$33.79

Current Price

$10.61

$23.18 discount

UndervaluedFair: $33.79Overvalued
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

COE3 strengths · Avg: 10.0/10
Revenue GrowthGrowth
70.9%10/10

Revenue surging 70.9% year-over-year

EPS GrowthGrowth
116.0%10/10

Earnings expanding 116.0% YoY

Debt/EquityHealth
-0.0910/10

Conservative balance sheet, low leverage

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

COE4 concerns · Avg: 2.5/10
Market CapQuality
$63.74M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-162.9%2/10

ROE of -162.9% — below average capital efficiency

Altman Z-ScoreHealth
-7.812/10

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 : COE

The strongest argument for COE centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 70.9% demonstrates continued momentum.

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 : COE

The primary concerns for COE are Market Cap, Piotroski F-Score, Return on Equity.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Key Dynamics to Monitor

COE profiles as a hypergrowth stock while TAL is a growth play — different risk/reward profiles.

COE carries more volatility with a beta of 0.78 — expect wider price swings.

COE is growing revenue faster at 70.9% — sustainability is the question.

TAL generates stronger free cash flow (478M), providing more financial flexibility.

Bottom Line

TAL scores higher overall (78/100 vs 45/100), backed by strong 28.4% margins and 31.9% revenue growth. COE offers better value entry with a 18.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

51Talk Online Education Group

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China

China Online Education Group, offers online English education services to students in the People's Republic of China and the Philippines. 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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