New OrientalTAL Education

New Oriental vs TAL Education

This page compares New Oriental Education & Tech Group Inc and TAL Education Group, outlining their business models, financial performance, and market context in clear, accessible terms. Educational c...

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Knowledge & Skills Economy

Knowledge & Skills Economy

Tap into the growing market for lifelong learning and professional development. These carefully selected companies are at the forefront of educational innovation, from digital platforms to specialized training services. Our analysts have identified the leaders in this expanding sector.

Published: June 17, 2025

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Knowledge Economy Builders

Knowledge Economy Builders

Discover companies shaping the future of education and professional development. These carefully selected stocks represent institutions and platforms creating the intellectual capital essential for tomorrow's workforce, curated by our investment experts.

Published: June 17, 2025

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Investment Analysis

New Oriental

Pros

  • New Oriental's 2025 revenue increased 13.6% year-over-year to $4.90 billion, demonstrating solid top-line growth.
  • Earnings rose by 20.07% to $371.72 million in 2025, reflecting improved profitability and operational efficiency.
  • The company benefits from diversified business segments including test preparation, online education, overseas consulting, and educational materials.

Considerations

  • The company's price-to-earnings (PE) ratio around 26-27 indicates relatively high valuation compared to some sector peers, implying limited margin for multiple expansion.
  • A beta of 0.26-0.30 indicates low stock price volatility but also suggests sensitivity to broader market downturns might be limited, potentially restricting upside trading momentum.
  • Despite positive revenue growth, the forward-looking analyst price target slightly trails the current share price, reflecting cautious investor sentiment.
TAL Education

Pros

  • TAL Education Group is a leading provider in China's K-12 after-school tutoring sector, a large and growing market.
  • The company maintains a strong brand presence and extensive educational service offerings tailored to K-12 students in Beijing and beyond.
  • TAL’s focus on core tutoring services aligns with continued demand for supplemental education in China, supporting potential revenue resilience.

Considerations

  • Regulatory pressures remain significant in the Chinese after-school tutoring industry, creating execution and compliance risks for TAL.
  • The company’s recent market capitalization around $6 billion is smaller than New Oriental’s, indicating potentially less scale and market influence.
  • Uncertainties around regulatory changes and government policy could constrain TAL’s growth prospects and profitability in the near to medium term.

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