New Oriental Education & Technology Group, Inc. (EDU) vs TAL Education Group (TAL)

New Oriental Education & Technology Group, Inc. and TAL Education Group are both Education & Training Services companies. New Oriental Education & Technology Group, Inc. is the larger, with a market value of $8.4B against $4.2B — 2.0× the size. TAL Education Group trades at the lower P/E: 7.3× against 20.2×. TAL Education Group grew revenue faster over the last twelve months: 32.4% against 15.5%. TAL Education Group has the higher net margin (28.4% vs 8.39%) and the higher return on invested capital (26.8% vs 0.00%). Across the 21 metrics below, TAL Education Group leads on 16 and New Oriental Education & Technology Group, Inc. on 5.

Valuation

Metric EDU TAL Education & Training Services median
P/E 20.23 7.29 13.22
P/S 1.70 2.07 0.99
P/B 2.22 1.62 1.62
Price to free cash flow 97.12 20.28 10.06
EV/EBITDA 6.90 14.61 8.56
EV/Sales 0.78 1.83 0.78
Earnings yield 4.94% 13.71% 3.17%
Free cash flow yield 1.03% 4.93% 2.81%

Profitability

Metric EDU TAL Education & Training Services median
Gross margin 54.64% 56.02% 54.64%
Operating margin 11.36% 12.50% 0.00%
Net margin 8.39% 28.43% 2.98%
Free cash flow margin 1.75% 22.93% 0.00%
Return on equity 11.68% 23.73% 0.00%
Return on assets 5.73% 14.54% 0.00%
Return on invested capital 0.00% 26.82% 0.00%

Growth

Metric EDU TAL Education & Training Services median
Revenue growth (TTM) 15.53% 32.40% 6.97%
EPS growth (last fiscal year) 30.26% 557.14% 15.68%
Revenue growth, 5-year CAGR 5.77% (7.72%) 4.27%
Net income growth, 5-year CAGR 7.28% 0.00% 0.00%

Health

Metric EDU TAL Education & Training Services median
Debt to equity 0.00 0.00 0.05
Current ratio 1.50 1.69 1.33
Net debt to EBITDA (6.44) (9.83) (0.15)

Dividend

Metric EDU TAL Education & Training Services median
Dividend yield 0.99% — 1.84%
Payout ratio 0.20 — 0.23

Size

Metric EDU TAL Education & Training Services median
Market cap 8.44b 4.19b 68.84m

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