TAL Education Group (TAL)vsUdemy Inc (UDMY)
TAL
TAL Education Group
$11.81
+2.70%
CONSUMER DEFENSIVE · Cap: $6.88B
UDMY
Udemy Inc
$4.63
0.00%
CONSUMER DEFENSIVE · Cap: $675.68M
Smart Verdict
WallStSmart Research — data-driven comparison
TAL Education Group generates 304% more annual revenue ($3.19B vs $789.84M). TAL leads profitability with a 28.4% profit margin vs 0.5%. TAL trades at a lower P/E of 7.8x. TAL earns a higher WallStSmart Score of 78/100 (B+).
TAL
Strong Buy78
out of 100
Grade: B+
UDMY
Avoid35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+89.7%
Fair Value
$114.94
Current Price
$11.81
$103.13 discount
Margin of Safety
+15.4%
Fair Value
$5.46
Current Price
$4.63
$0.83 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Revenue surging 31.9% year-over-year
Earnings expanding 1360.0% YoY
Conservative balance sheet, low leverage
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Smaller company, higher risk/reward
ROE of 1.9% — below average capital efficiency
0.5% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : TAL
The strongest argument for TAL centers on P/E Ratio, Revenue Growth, EPS Growth. Profitability is solid with margins at 28.4% and operating margin at 18.1%. Revenue growth of 31.9% demonstrates continued momentum.
Bull Case : UDMY
UDMY has a balanced fundamental profile.
Bear Case : TAL
The primary concerns for TAL are PEG Ratio.
Bear Case : UDMY
The primary concerns for UDMY are EPS Growth, Market Cap, Return on Equity. A P/E of 154.3x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
TAL profiles as a growth stock while UDMY is a value play — different risk/reward profiles.
UDMY carries more volatility with a beta of 1.58 — expect wider price swings.
TAL is growing revenue faster at 31.9% — sustainability is the question.
TAL generates stronger free cash flow (478M), providing more financial flexibility.
Bottom Line
TAL scores higher overall (78/100 vs 35/100), backed by strong 28.4% margins and 31.9% revenue growth. UDMY offers better value entry with a 15.4% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Udemy Inc
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Udemy, Inc. operates a platform for teaching and learning skills in the United States and internationally. The company is headquartered in San Francisco, California.
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