Stride, Inc. (LRN) vs TAL Education Group (TAL)

Stride, Inc. and TAL Education Group are both Education & Training Services companies. Stride, Inc. and TAL Education Group are of similar size ($3.4B and $3.2B). TAL Education Group trades at the lower P/E: 7.6× against 9.5×. TAL Education Group grew revenue faster over the last twelve months: 25.4% against 2.48%. TAL Education Group has the higher net margin (22.1% vs 13.2%) and the higher return on invested capital (27.3% vs 20.7%). Across the 22 metrics below, Stride, Inc. leads on 11 and TAL Education Group on 11.

Valuation

Metric LRN TAL Education & Training Services median
P/E 9.51 7.62 12.09
P/S 1.23 1.69 0.80
P/B 1.86 1.35 1.39
Price to free cash flow 7.36 27.31 7.31
EV/EBITDA 4.75 9.23 6.36
EV/Sales 1.12 1.50 0.58
Earnings yield 10.52% 13.12% 3.29%
Free cash flow yield 13.59% 3.66% 3.03%

Profitability

Metric LRN TAL Education & Training Services median
Gross margin 37.44% 56.89% 55.03%
Operating margin 18.37% 16.20% 0.00%
Net margin 13.18% 22.13% 1.77%
Free cash flow margin 16.68% 18.37% 0.00%
Return on equity 20.90% 19.35% 0.00%
Return on assets 13.75% 12.15% 0.00%
Return on invested capital 20.72% 27.33% 0.00%

Growth

Metric LRN TAL Education & Training Services median
Revenue growth (TTM) 2.48% 25.35% 5.84%
EPS growth (last fiscal year) 20.00% 557.14% 14.71%
Revenue growth, 5-year CAGR 10.38% (7.72%) 4.24%
Net income growth, 5-year CAGR 36.47% 0.00% 0.00%

Health

Metric LRN TAL Education & Training Services median
Debt to equity 0.31 0.01 0.05
Current ratio 2.56 1.84 1.37
Net debt to EBITDA (0.84) (9.83) (0.04)

Dividend

Metric LRN TAL Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric LRN TAL Education & Training Services median
Market cap 3.15b 3.40b 59.54m

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