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 $3.4B — 2.5× the size. TAL Education Group trades at the lower P/E: 7.6× against 16.3×. TAL Education Group grew revenue faster over the last twelve months: 25.4% against 20.6%. TAL Education Group has the higher net margin (22.1% vs 8.44%) and the higher return on invested capital (27.3% vs 0.00%). Across the 22 metrics below, TAL Education Group leads on 16 and New Oriental Education & Technology Group, Inc. on 6.

Valuation

Metric EDU TAL Education & Training Services median
P/E 16.31 7.62 12.09
P/S 1.39 1.69 0.80
P/B 1.94 1.35 1.39
Price to free cash flow 82.16 27.31 7.31
EV/EBITDA 4.49 9.23 6.36
EV/Sales 0.53 1.50 0.58
Earnings yield 6.13% 13.12% 3.29%
Free cash flow yield 1.22% 3.66% 3.03%

Profitability

Metric EDU TAL Education & Training Services median
Gross margin 54.31% 56.89% 55.03%
Operating margin 11.76% 16.20% 0.00%
Net margin 8.44% 22.13% 1.77%
Free cash flow margin 17.13% 18.37% 0.00%
Return on equity 0.00% 19.35% 0.00%
Return on assets 6.02% 12.15% 0.00%
Return on invested capital 0.00% 27.33% 0.00%

Growth

Metric EDU TAL Education & Training Services median
Revenue growth (TTM) 20.55% 25.35% 5.84%
EPS growth (last fiscal year) 30.26% 557.14% 14.71%
Revenue growth, 5-year CAGR 5.77% (7.72%) 4.24%
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 0.01 0.05
Current ratio 1.61 1.84 1.37
Net debt to EBITDA (6.44) (9.83) (0.04)

Dividend

Metric EDU TAL Education & Training Services median
Dividend yield 1.11% — 2.64%
Payout ratio 0.18 — 0.26

Size

Metric EDU TAL Education & Training Services median
Market cap 8.37b 3.40b 59.54m

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