Critical Survey: TAL Education Group (TAL) and Its Rivals
TAL Education Group (NYSE: TAL) is one of 20 public companies in the “General Education Services” industry, but how does it contrast to its competitors? We will compare TAL Education Group to similar companies based on the strength of its profitability, earnings, dividends, risk, analyst recommendations, institutional ownership and valuation.
Insider and Institutional 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, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares TAL Education Group and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|TAL Education Group||$1.17 billion||$182.99 million||140.16|
|TAL Education Group Competitors||$909.14 million||$144.34 million||4.41|
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.
This is a breakdown of current ratings and recommmendations for TAL Education Group and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TAL Education Group||0||2||9||0||2.82|
|TAL Education Group Competitors||61||437||454||2||2.42|
TAL Education Group presently has a consensus target price of $28.29, suggesting a potential downside of 16.47%. As a group, “General Education Services” companies have a potential upside of 2.52%. Given TAL Education Group’s competitors higher possible upside, analysts clearly believe TAL Education Group has less favorable growth aspects than its competitors.
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%|
Risk & Volatility
TAL Education Group has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, TAL Education Group’s competitors have a beta of 1.14, suggesting that their average stock price is 14% more volatile than the S&P 500.
TAL Education Group beats its competitors on 8 of the 13 factors compared.
About TAL Education Group
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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