WallStSmart

TAL Education Group (TAL)vsTCTM Kids IT Education Inc. (VSA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TAL Education Group generates 307146% more annual revenue ($3.19B vs $1.04M). VSA leads profitability with a 165437.0% profit margin vs 28.4%. VSA appears more attractively valued with a PEG of 0.33. TAL earns a higher WallStSmart Score of 78/100 (B+).

TAL

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 7.5Value: 7.3Quality: 7.5
Piotroski: 5/9Altman Z: 2.33

VSA

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 4.0Value: 6.7Quality: 5.8
Piotroski: 4/9Altman Z: -1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TALUndervalued (+89.7%)

Margin of Safety

+89.7%

Fair Value

$115.83

Current Price

$11.65

$104.18 discount

UndervaluedFair: $115.83Overvalued

Intrinsic value data unavailable for VSA.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TAL6 strengths · Avg: 9.5/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Revenue GrowthGrowth
31.9%10/10

Revenue surging 31.9% year-over-year

EPS GrowthGrowth
1360.0%10/10

Earnings expanding 1360.0% YoY

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

VSA3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

Price/BookValuation
0.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
165437.0%10/10

Keeps 165437 of every $100 in revenue as profit

Areas to Watch

TAL1 concerns · Avg: 2.0/10
PEG RatioValuation
2.912/10

Expensive relative to growth rate

VSA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$10.33M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-32.6%2/10

ROE of -32.6% — below average capital efficiency

Revenue GrowthGrowth
-84.5%2/10

Revenue declined 84.5%

Comparative Analysis Report

WallStSmart Research

Bull 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 : VSA

The strongest argument for VSA centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 165437.0% and operating margin at -1825.0%. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bear Case : TAL

The primary concerns for TAL are PEG Ratio.

Bear Case : VSA

The primary concerns for VSA are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

TAL profiles as a growth stock while VSA is a declining play — different risk/reward profiles.

VSA carries more volatility with a beta of 0.54 — 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 42/100), backed by strong 28.4% margins and 31.9% revenue growth. Both earn "Strong Buy" and "Hold" 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.

TCTM Kids IT Education Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

TCTM Kids IT Education Inc., engages in the provision of IT-focused education services in Mainland China. The company is headquartered in Beijing, the People's Republic of China.

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