TAL Education Group (TAL) and Legacy Education Alliance (LEAI) Critical Review
TAL Education Group (NYSE:TAL) and Legacy Education Alliance (OTCMKTS:LEAI) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Risk and Volatility
TAL Education Group has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, Legacy Education Alliance has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500.
This table compares TAL Education Group and Legacy Education Alliance’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TAL Education Group||$1.72 billion||10.77||$198.43 million||$0.34||95.82|
|Legacy Education Alliance||$97.73 million||0.05||$4.29 million||$0.31||0.65|
TAL Education Group has higher revenue and earnings than Legacy Education Alliance. Legacy Education Alliance is trading at a lower price-to-earnings ratio than TAL Education Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
55.2% of TAL Education Group shares are held by institutional investors. 1.8% of TAL Education Group shares are held by company insiders. Comparatively, 25.9% of Legacy Education Alliance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares TAL Education Group and Legacy Education Alliance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TAL Education Group||14.40%||18.88%||9.81%|
|Legacy Education Alliance||-3.30%||-5.46%||-1.28%|
This is a summary of recent ratings for TAL Education Group and Legacy Education Alliance, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TAL Education Group||0||2||4||0||2.67|
|Legacy Education Alliance||0||0||0||0||N/A|
TAL Education Group currently has a consensus target price of $43.00, indicating a potential upside of 31.98%. Given TAL Education Group’s higher probable upside, research analysts plainly believe TAL Education Group is more favorable than Legacy Education Alliance.
TAL Education Group beats Legacy Education Alliance on 11 of the 13 factors compared between the two stocks.
About TAL Education Group
TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. The company also provides tutoring services primarily through small classes under the Xueersi, Mobby, and Firstleap brand names; personalized premium services under Izhikang name; and online courses. In addition, it operates jzb.com, an online education platform that serves as a gateway for online courses offered through xueersi.com; and other Websites for specific topics and offerings, such as college entrance examinations, high school entrance examinations, graduate school entrance examinations, preschool education, and raising infants and toddlers, as well as mathematics, English, and Chinese composition. Further, the company provides educational content through mobile applications; operates mmbang.com and the Mama Bang app, an online platform focusing on children, baby, and maternity market; and provides consulting services for overseas studies under the Shunshun Liuxue name. Additionally, it offers tutoring services for students aged two through twelve under the Mobby brand; provides education and management consulting, and investment management and consulting services; and develops and sells software and networks, as well as offers related consulting services. The company also provides online advertising services; and engages in the sale of educational materials. As of February 28, 2018, the company's educational network included 594 learning centers and 465 service centers in 42 cities. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.
About Legacy Education Alliance
Legacy Education Alliance, Inc. provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally. The company's product offerings include Rich Dad Education, which is based on the teachings of Robert Kiyosaki; Rich Dad Stock Education program that teaches students how to become savvy investors; Making Money from Property with Martin Roberts, a property-based curriculum; and Brick Buy Brick program that introduces its students to the tools and strategies used by successful investors to make money work for them through real estate investing. It also provides Building Wealth program that trains students on how to build and preserve wealth, start or manage a business, and benefit through investing in property; Robbie Fowler Property Academy for teaching investment strategies; Women In Wealth program to empower women with a financial education; Perform in Property program that helps students to achieve level of performance and financial independence they desire; Teach Me to Trade program to learn the core concepts of trading in the financial markets; Trade Up Investor Education that helps students to enhance their knowledge of stock and options trading; and Elite training courses. The company offers its programs through various formats and channels, including free-preview workshops, basic training classes, symposiums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. Legacy Education Alliance, Inc. is based in Cape Coral, Florida.
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