TAL Education Group (NYSE:TAL) and Afya (NYSE:AFYA) Critical Analysis

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

Insider and Institutional Ownership

59.9% of TAL Education Group shares are held by institutional investors. 1.8% of TAL Education Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TAL Education Group and Afya’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TAL Education Group $2.56 billion 7.04 $367.24 million $0.61 52.20
Afya N/A N/A N/A N/A N/A

TAL Education Group has higher revenue and earnings than Afya.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TAL Education Group and Afya, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TAL Education Group 0 4 4 0 2.50
Afya 0 1 3 0 2.75

TAL Education Group currently has a consensus target price of $31.98, indicating a potential upside of 0.42%. Afya has a consensus target price of $29.55, indicating a potential upside of 18.25%. Given Afya’s stronger consensus rating and higher possible upside, analysts clearly believe Afya is more favorable than TAL Education Group.

Profitability

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

Net Margins Return on Equity Return on Assets
TAL Education Group 10.80% 13.33% 7.46%
Afya N/A N/A N/A

Summary

TAL Education Group beats Afya on 7 of the 9 factors compared between the two stocks.

TAL Education Group Company Profile

TAL Education Group 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 has a strategic agreement with the United Nations Educational, Scientific and Cultural Organization to promote future education through artificial intelligence. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

Afya Company Profile

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company provides educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, physical education, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical preparatory courses and other continuing medical education services through its online platform; and develops and sells electronically distributed educational courses on medicine science, and related printed and technological educational content. As of June 24, 2019, its network consisted of 23 operating campuses, 21 of which are undergraduate and graduate medical school campuses. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.

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