TAL Education Group (TAL) vs Twenty One Capital, Inc. (XXI)

TAL Education Group and Twenty One Capital, Inc. are both Education & Training Services companies. TAL Education Group and Twenty One Capital, Inc. are of similar size ($3.5B and $3.4B). Twenty One Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; TAL Education Group trades at 7.6×. TAL Education Group has the higher net margin (22.1% vs 0.00%) and the higher return on invested capital (27.3% vs −0.86%). Across the 13 metrics below, TAL Education Group leads on 11 and Twenty One Capital, Inc. on 2.

Valuation

Metric TAL XXI Education & Training Services median
P/E 7.62 n/m 12.09
P/S 1.69 n/m 0.80
P/B 1.35 1.39 1.39
Price to free cash flow 27.31 n/m 7.31
EV/EBITDA 9.23 n/m 6.36
EV/Sales 1.50 n/m 0.58
Earnings yield 13.12% (101.23%) 3.29%
Free cash flow yield 3.66% (0.46%) 3.03%

Profitability

Metric TAL XXI Education & Training Services median
Gross margin 56.89% — 55.03%
Operating margin 16.20% 0.00% 0.00%
Net margin 22.13% 0.00% 1.77%
Free cash flow margin 18.37% 0.00% 0.00%
Return on equity 19.35% (137.05%) 0.00%
Return on assets 12.15% (107.69%) 0.00%
Return on invested capital 27.33% (0.86%) 0.00%

Growth

Metric TAL XXI Education & Training Services median
Revenue growth (TTM) 25.35% — 5.84%
EPS growth (last fiscal year) 557.14% (1,639.74%) 14.71%
Revenue growth, 5-year CAGR (7.72%) — 4.24%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric TAL XXI Education & Training Services median
Debt to equity 0.01 0.22 0.05
Current ratio 1.84 71.05 1.37
Net debt to EBITDA (9.83) (25.23) (0.04)

Dividend

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

Size

Metric TAL XXI Education & Training Services median
Market cap 3.40b 3.48b 59.54m

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