WallStSmart

Franklin Covey Company (FC)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 1045% more annual revenue ($3.01B vs $262.75M). TAL leads profitability with a 17.6% profit margin vs 0.8%. FC appears more attractively valued with a PEG of 1.15. TAL earns a higher WallStSmart Score of 68/100 (B-).

FC

Hold

40

out of 100

Grade: F

Growth: 3.3Profit: 4.5Value: 4.0Quality: 5.3
Piotroski: 4/9Altman Z: 2.00

TAL

Strong Buy

68

out of 100

Grade: B-

Growth: 10.0Profit: 6.5Value: 7.3Quality: 8.0
Piotroski: 5/9Altman Z: 2.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FCFair Value (-3.7%)

Margin of Safety

-3.7%

Fair Value

$18.08

Current Price

$21.14

$3.06 premium

UndervaluedFair: $18.08Overvalued
TALUndervalued (+89.2%)

Margin of Safety

+89.2%

Fair Value

$110.03

Current Price

$10.89

$99.14 discount

UndervaluedFair: $110.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FC0 strengths · Avg: 0/10

No standout strengths identified

TAL5 strengths · Avg: 9.4/10
P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Revenue GrowthGrowth
31.5%10/10

Revenue surging 31.5% year-over-year

EPS GrowthGrowth
536.0%10/10

Earnings expanding 536.0% YoY

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

FC4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Market CapQuality
$241.46M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.8%3/10

0.8% margin — thin

P/E RatioValuation
139.1x2/10

Premium valuation, high expectations priced in

TAL2 concerns · Avg: 2.0/10
PEG RatioValuation
10.712/10

Expensive relative to growth rate

Free Cash FlowQuality
$-429.09M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : FC

PEG of 1.15 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 17.6% and operating margin at 9.0%. Revenue growth of 31.5% demonstrates continued momentum.

Bear Case : FC

The primary concerns for FC are Revenue Growth, Market Cap, Profit Margin. A P/E of 139.1x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio, Free Cash Flow.

Key Dynamics to Monitor

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

FC carries more volatility with a beta of 0.80 — expect wider price swings.

TAL is growing revenue faster at 31.5% — sustainability is the question.

FC generates stronger free cash flow (-32,000), providing more financial flexibility.

Bottom Line

TAL scores higher overall (68/100 vs 40/100), backed by strong 17.6% margins and 31.5% revenue growth. 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.

Franklin Covey Company

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, leadership, and educational improvement for organizations and individuals globally. The company is headquartered in Salt Lake City, Utah.

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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