Sunlands Technology Group (STG)vsTAL Education Group (TAL)
STG
Sunlands Technology Group
$3.86
-5.39%
CONSUMER DEFENSIVE · Cap: $62.35M
TAL
TAL Education Group
$11.30
+2.26%
CONSUMER DEFENSIVE · Cap: $6.72B
Smart Verdict
WallStSmart Research — data-driven comparison
TAL Education Group generates 39% more annual revenue ($2.82B vs $2.03B). STG leads profitability with a 18.9% profit margin vs 9.9%. STG trades at a lower P/E of 1.1x. STG earns a higher WallStSmart Score of 69/100 (B-).
STG
Strong Buy69
out of 100
Grade: B-
TAL
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+97.4%
Fair Value
$194.22
Current Price
$3.86
$190.36 discount
Margin of Safety
+47.1%
Fair Value
$22.46
Current Price
$11.30
$11.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 53 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 26.5%
Earnings expanding 42.6% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 27.0% year-over-year
Areas to Watch
Smaller company, higher risk/reward
Distress zone — elevated risk
ROE of 7.7% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : STG
The strongest argument for STG centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 18.9% and operating margin at 26.5%.
Bull Case : TAL
The strongest argument for TAL centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 27.0% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.
Bear Case : STG
The primary concerns for STG are Market Cap, Altman Z-Score.
Bear Case : TAL
The primary concerns for TAL are Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
STG profiles as a mature stock while TAL is a growth play — different risk/reward profiles.
STG carries more volatility with a beta of 1.13 — expect wider price swings.
TAL is growing revenue faster at 27.0% — sustainability is the question.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
STG scores higher overall (69/100 vs 68/100), backed by strong 18.9% margins. TAL offers better value entry with a 47.1% margin of safety. Both earn "Strong 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.
Sunlands Technology Group
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
Sunlands Technology Group, provides online education services in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
Visit Website →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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