Strategic Education Inc (STRA)vsTAL Education Group (TAL)
STRA
Strategic Education Inc
$85.08
-2.90%
CONSUMER DEFENSIVE · Cap: $1.74B
TAL
TAL Education Group
$10.89
+4.31%
CONSUMER DEFENSIVE · Cap: $5.68B
Smart Verdict
WallStSmart Research — data-driven comparison
TAL Education Group generates 137% more annual revenue ($3.01B vs $1.27B). TAL leads profitability with a 17.6% profit margin vs 10.2%. STRA appears more attractively valued with a PEG of 0.69. TAL earns a higher WallStSmart Score of 68/100 (B-).
STRA
Buy62
out of 100
Grade: C+
TAL
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+71.1%
Fair Value
$267.60
Current Price
$85.08
$182.52 discount
Margin of Safety
+89.2%
Fair Value
$110.03
Current Price
$10.89
$99.14 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Attractively priced relative to earnings
Revenue surging 31.5% year-over-year
Earnings expanding 536.0% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
0.8% revenue growth
Smaller company, higher risk/reward
ROE of 7.9% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : STRA
The strongest argument for STRA centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.69 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 : STRA
The primary concerns for STRA are Revenue Growth, Market Cap, Return on Equity.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio, Free Cash Flow.
Key Dynamics to Monitor
STRA profiles as a value stock while TAL is a growth play — different risk/reward profiles.
STRA carries more volatility with a beta of 0.50 — expect wider price swings.
TAL is growing revenue faster at 31.5% — sustainability is the question.
STRA generates stronger free cash flow (77M), providing more financial flexibility.
Bottom Line
TAL scores higher overall (68/100 vs 62/100), backed by strong 17.6% margins and 31.5% revenue growth. STRA offers better value entry with a 71.1% margin of safety. 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.
Strategic Education Inc
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Strategic Education, Inc., offers postsecondary education and non-degree programs. The company is headquartered in Herndon, Virginia.
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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