Financial Analysis: TAL Education Group (TAL) and Its Competitors

TAL Education Group (NYSE: TAL) is one of 20 public companies in the “General Education Services” industry, but how does it weigh in compared to its competitors? We will compare TAL Education Group to related companies based on the strength of its earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

8.6% of TAL Education Group shares are held by institutional investors. Comparatively, 66.6% of shares of all “General Education Services” companies are held by institutional investors. 1.8% of TAL Education Group shares are held by insiders. Comparatively, 13.9% of shares of all “General Education Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

TAL Education Group has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, TAL Education Group’s competitors have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for TAL Education Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TAL Education Group 0 2 8 0 2.80
TAL Education Group Competitors 61 441 455 2 2.42

TAL Education Group presently has a consensus price target of $28.29, suggesting a potential downside of 18.68%. As a group, “General Education Services” companies have a potential upside of 4.03%. Given TAL Education Group’s competitors higher probable upside, analysts clearly believe TAL Education Group has less favorable growth aspects than its competitors.

Profitability

This table compares TAL Education Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TAL Education Group 11.14% 19.47% 7.05%
TAL Education Group Competitors 0.80% 0.13% 2.03%

Earnings & Valuation

This table compares TAL Education Group and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TAL Education Group $1.17 billion $182.99 million 143.96
TAL Education Group Competitors $909.14 million $144.34 million 4.92

TAL Education Group has higher revenue and earnings than its competitors. TAL Education Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

TAL Education Group beats its competitors on 8 of the 13 factors compared.

TAL Education Group Company Profile

TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.

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