DAO vs TAL vs EDU

For growth investors, TAL Education Group (TAL) is the stronger pick with 51.

2% revenue growth year-over-year, versus 3. 6% for Youdao, Inc. (DAO). TAL Education Group (TAL) offers the better valuation at 9. 0x trailing P/E (18. 1x forward), making it the more compelling value choice. Analysts rate Youdao, Inc. (DAO) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, TAL Education Group (TAL) is the cheapest at 9.

0x versus New Oriental Education & Technology Group Inc. at 24. 5x. On forward P/E, Youdao, Inc. is actually cheaper at 8. 3x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Youdao, Inc.

(DAO) delivered a total return of -47. 5%, compared to -79. 7% for TAL Education Group (TAL). Over 10 years, the gap is even starker: EDU returned +47. 3% versus DAO's -4. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Youdao, Inc.

(DAO) is the lower-risk stock at 0. 78β versus TAL Education Group's 0. 96β — meaning TAL is approximately 23% more volatile than DAO relative to the S&P 500. On balance sheet safety, TAL Education Group (TAL) carries a lower debt/equity ratio of 9% versus 20% for New Oriental Education & Technology Group Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TAL Education Group (TAL) is pulling ahead at 51.

2% versus 3. 6% for Youdao, Inc. (DAO). On earnings-per-share growth, the picture is similar: TAL Education Group grew EPS 24. 7% year-over-year, compared to -100. 0% for Youdao, Inc.. Over a 3-year CAGR, EDU leads at 16. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

New Oriental Education & Technology Group Inc.

(EDU) is the more profitable company, earning 7. 6% net margin versus 1. 8% for Youdao, Inc. — meaning it keeps 7. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EDU leads at 8. 7% versus -0. 3% for TAL. At the gross margin level — before operating expenses — EDU leads at 55. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Youdao, Inc.

(DAO) trades at 8. 3x forward P/E versus 18. 1x for TAL Education Group — 9. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TAL: 57. 9% to $18. 00.

In this comparison, EDU (1.

1% yield) pays a dividend. DAO, TAL do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, New Oriental Education & Technology Group Inc.

(EDU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 1. 1% yield). Both have compounded well over 10 years (EDU: +47. 3%, TAL: +27. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: DAO is a small-cap quality compounder stock; TAL is a small-cap high-growth stock; EDU is a small-cap quality compounder stock. EDU pays a dividend while DAO, TAL do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.