Sunlands Technology Group (STG)vsTAL Education Group (TAL)
STG
Sunlands Technology Group
$3.47
+1.76%
CONSUMER DEFENSIVE · Cap: $46.59M
TAL
TAL Education Group
$9.56
-1.65%
CONSUMER DEFENSIVE · Cap: $5.63B
Smart Verdict
WallStSmart Research — data-driven comparison
TAL Education Group generates 53% more annual revenue ($3.01B vs $1.97B). STG leads profitability with a 18.6% profit margin vs 17.6%. STG trades at a lower P/E of 0.9x. TAL earns a higher WallStSmart Score of 68/100 (B-).
STG
Buy57
out of 100
Grade: C
TAL
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for STG.
Margin of Safety
+87.9%
Fair Value
$98.36
Current Price
$9.56
$88.80 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 36 in profit
Conservative balance sheet, low leverage
Strong operational efficiency at 22.0%
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 31.5% year-over-year
Earnings expanding 536.0% YoY
Conservative balance sheet, low leverage
Areas to Watch
3.2% earnings growth
Smaller company, higher risk/reward
Revenue declined 9.6%
Distress zone — elevated risk
Expensive relative to growth rate
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 18.6% and operating margin at 22.0%.
Bull Case : TAL
The strongest argument for TAL centers on P/E Ratio, Price/Book, Revenue 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 : STG
The primary concerns for STG are EPS Growth, Market Cap, Revenue Growth.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Key Dynamics to Monitor
STG profiles as a declining stock while TAL is a growth play — different risk/reward profiles.
STG carries more volatility with a beta of 1.42 — 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 (68/100 vs 57/100), 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.
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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