WallStSmart

Graham Holdings Co (GHC)vsTAL Education Group (TAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Graham Holdings Co generates 66% more annual revenue ($4.98B vs $3.01B). TAL leads profitability with a 17.6% profit margin vs 6.0%. GHC appears more attractively valued with a PEG of 4.04. TAL earns a higher WallStSmart Score of 66/100 (B-).

GHC

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 5.3Quality: 7.5
Piotroski: 4/9Altman Z: 3.13

TAL

Strong Buy

66

out of 100

Grade: B-

Growth: 10.0Profit: 6.5Value: 6.7Quality: 6.0
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GHCUndervalued (+5.3%)

Margin of Safety

+5.3%

Fair Value

$1171.08

Current Price

$1134.42

$36.66 discount

UndervaluedFair: $1171.08Overvalued
TALUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$101.06

Current Price

$10.89

$90.17 discount

UndervaluedFair: $101.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHC5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.1310/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

TAL4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
31.5%10/10

Revenue surging 31.5% year-over-year

EPS GrowthGrowth
536.0%10/10

Earnings expanding 536.0% YoY

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

GHC3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

PEG RatioValuation
4.042/10

Expensive relative to growth rate

TAL1 concerns · Avg: 2.0/10
PEG RatioValuation
12.622/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GHC

The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.

Bull Case : TAL

The strongest argument for TAL centers on Revenue Growth, EPS Growth, P/E Ratio. Profitability is solid with margins at 17.6% and operating margin at 9.0%. Revenue growth of 31.5% demonstrates continued momentum.

Bear Case : GHC

The primary concerns for GHC are Return on Equity, Profit Margin, PEG Ratio.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Key Dynamics to Monitor

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

GHC carries more volatility with a beta of 0.79 — expect wider price swings.

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

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

Bottom Line

TAL scores higher overall (66/100 vs 58/100), backed by strong 17.6% margins and 31.5% 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.

Graham Holdings Co

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.

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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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