TAL Education Group (TAL) & ATA (ATAI) Financial Analysis


ATA (NASDAQ:ATAI) and TAL Education Group (NYSE:TAL) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Profitability

This table compares ATA and TAL Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ATA 276.50% -27.69% -19.45%
TAL Education Group 11.61% 16.10% 7.87%

Analyst Recommendations

This is a summary of recent recommendations for ATA and TAL Education Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATA 0 0 0 0 N/A
TAL Education Group 0 3 4 0 2.57

TAL Education Group has a consensus price target of $43.75, indicating a potential upside of 63.37%. Given TAL Education Group’s higher probable upside, analysts plainly believe TAL Education Group is more favorable than ATA.

Institutional and Insider Ownership

4.0% of ATA shares are held by institutional investors. Comparatively, 55.2% of TAL Education Group shares are held by institutional investors. 52.9% of ATA shares are held by insiders. Comparatively, 1.8% of TAL Education Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

ATA has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, TAL Education Group has a beta of -0.3, suggesting that its share price is 130% less volatile than the S&P 500.

Earnings & Valuation

This table compares ATA and TAL Education Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ATA $48.63 million 0.50 $8.30 million N/A N/A
TAL Education Group $1.72 billion 8.85 $198.43 million $0.34 78.76

TAL Education Group has higher revenue and earnings than ATA.

Summary

TAL Education Group beats ATA on 8 of the 11 factors compared between the two stocks.

About ATA

ATA Inc., through its subsidiaries, provides computer-based testing services in the People’s Republic of China. The company offers services for the creation and delivery of computer-based tests utilizing its test delivery platform and proprietary testing technologies that are used for professional licensure and certification tests in various industries, including IT services, banking, teaching, and insurance; and administrative services, such as test registration, scheduling, fee collection, and certification fulfillment. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests, from test form compilation to test scoring and results analysis. The company also offers mobile test administration platform MTS for test administration; and EzTest, an online self-service testing platform that provides testing management and delivery functions for the test delivery organizations and individuals, including item banking, test form composition, test delivery, online proctoring, and test result analysis. In addition, it provides EzInterview, an online interview management platform to support the talent assessment and hiring process; and HR Select, an employee assessment solution that enables corporate human resources departments to test, benchmark, and analyze job applicants; and online education services. As of December 31, 2017, the company operated 3,344 authorized test centers. It serves professional associations, governmental agencies, and IT vendors, as well as individual online education services consumers. ATA Inc. was founded in 1999 and is headquartered in Beijing, the People’s Republic of China.

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.

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