WallStSmart

Sunlands Technology Group (STG)vsTAL Education Group (TAL)

VS

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

Buy

57

out of 100

Grade: C

Growth: 2.7Profit: 8.5Value: 6.7Quality: 6.5
Piotroski: 7/9Altman Z: 1.26

TAL

Strong Buy

68

out of 100

Grade: B-

Growth: 10.0Profit: 6.5Value: 7.3Quality: 7.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for STG.

TALUndervalued (+87.9%)

Margin of Safety

+87.9%

Fair Value

$98.36

Current Price

$9.56

$88.80 discount

UndervaluedFair: $98.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

STG5 strengths · Avg: 9.4/10
P/E RatioValuation
0.9x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Return on EquityProfitability
36.4%10/10

Every $100 of equity generates 36 in profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

TAL5 strengths · Avg: 9.8/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

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

Areas to Watch

STG4 concerns · Avg: 2.8/10
EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Market CapQuality
$46.59M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-9.6%2/10

Revenue declined 9.6%

Altman Z-ScoreHealth
1.262/10

Distress zone — elevated risk

TAL1 concerns · Avg: 2.0/10
PEG RatioValuation
10.462/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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.

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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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