Critical Survey: TAL Education Group (TAL) versus Adtalem Global Education (ATGE)
Adtalem Global Education (NYSE: ATGE) and TAL Education Group (NYSE:TAL) are both mid-cap non-cyclical consumer goods & services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitabiliy and institutional ownership.
This table compares Adtalem Global Education and TAL Education Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Adtalem Global Education||8.85%||9.81%||6.95%|
|TAL Education Group||11.00%||18.24%||7.01%|
Volatility and Risk
Adtalem Global Education has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.
Insider and Institutional Ownership
57.4% of TAL Education Group shares are held by institutional investors. 5.3% of Adtalem Global Education shares are held by company insiders. Comparatively, 1.8% of TAL Education Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Adtalem Global Education and TAL Education Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Adtalem Global Education||$1.83 billion||1.27||$303.29 million||$1.08||34.35|
|TAL Education Group||$1.04 billion||9.29||$153.78 million||$1.29||91.61|
Adtalem Global Education has higher revenue and earnings than TAL Education Group. Adtalem Global Education is trading at a lower price-to-earnings ratio than TAL Education Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Adtalem Global Education and TAL Education Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Adtalem Global Education||0||2||4||0||2.67|
|TAL Education Group||0||1||8||0||2.89|
Adtalem Global Education presently has a consensus price target of $34.40, indicating a potential downside of 7.28%. TAL Education Group has a consensus price target of $95.79, indicating a potential downside of 18.94%. Given Adtalem Global Education’s higher possible upside, research analysts plainly believe Adtalem Global Education is more favorable than TAL Education Group.
Adtalem Global Education pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. TAL Education Group does not pay a dividend. Adtalem Global Education pays out 33.3% of its earnings in the form of a dividend.
TAL Education Group beats Adtalem Global Education on 10 of the 16 factors compared between the two stocks.
Adtalem Global Education Company Profile
Adtalem Global Education Inc., formerly DeVry Education Group Inc. (DeVry Group) is a global provider of educational services. DeVry Group’s focuses on empowering its students to achieve their educational and career goals. DeVry Group’s institutions offer a range of programs in healthcare, technology, business, accounting, finance and law. The Company operates in three segments: Medical and Healthcare; International and Professional Education, and Business, Technology and Management. Medical and Healthcare includes DeVry Medical International, Chamberlain College of Nursing (Chamberlain) and Carrington College. International and Professional Education consists of DeVry Brasil and Becker Professional Education. Business, Technology and Management consists of DeVry University. As of June 30, 2016, DMI operated three institutions: American University of the Caribbean School of Medicine (AUC), Ross University School of Medicine (RUSM) and Ross University School of Veterinary Medicine.
TAL Education Group Company Profile
TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.
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