Education & Training Services
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TAL vs PRDO
Revenue, margins, valuation, and 5-year total return — side by side.
Education & Training Services
TAL vs PRDO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Education & Training Services | Education & Training Services |
| Market Cap | $771M | $2.16B |
| Revenue (TTM) | $2.66B | $855M |
| Net Income (TTM) | $171M | $170M |
| Gross Margin | 54.4% | 51.8% |
| Operating Margin | 2.7% | 24.3% |
| Forward P/E | 18.1x | 12.0x |
| Total Debt | $333M | $105M |
| Cash & Equiv. | $1.77B | $132M |
TAL vs PRDO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| TAL Education Group (TAL) | 100 | 20.2 | -79.8% |
| Perdoceo Education … (PRDO) | 100 | 211.5 | +111.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TAL vs PRDO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
TAL is the clearest fit if your priority is growth exposure.
- Rev growth 51.2%, EPS growth 24.7%, 3Y rev CAGR -20.0%
- 51.2% revenue growth vs PRDO's 24.2%
- +23.9% vs PRDO's +15.4%
PRDO carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 5 yrs, beta 0.48, yield 1.6%
- 5.1% 10Y total return vs TAL's 27.3%
- Lower volatility, beta 0.48, Low D/E 10.8%, current ratio 5.06x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 51.2% revenue growth vs PRDO's 24.2% | |
| Value | Lower P/E (12.0x vs 18.1x) | |
| Quality / Margins | 19.9% margin vs TAL's 6.5% | |
| Stability / Safety | Beta 0.48 vs TAL's 0.96 | |
| Dividends | 1.6% yield; 5-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +23.9% vs PRDO's +15.4% | |
| Efficiency (ROA) | 13.2% ROA vs TAL's 3.1%, ROIC 15.3% vs -0.3% |
TAL vs PRDO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
TAL vs PRDO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
PRDO leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
TAL is the larger business by revenue, generating $2.7B annually — 3.1x PRDO's $855M. PRDO is the more profitable business, keeping 19.9% of every revenue dollar as net income compared to TAL's 6.5%. On growth, TAL holds the edge at +38.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $2.7B | $855M |
| EBITDAEarnings before interest/tax | $72M | $247M |
| Net IncomeAfter-tax profit | $171M | $170M |
| Free Cash FlowCash after capex | $441M | $221M |
| Gross MarginGross profit ÷ Revenue | +54.4% | +51.8% |
| Operating MarginEBIT ÷ Revenue | +2.7% | +24.3% |
| Net MarginNet income ÷ Revenue | +6.5% | +19.9% |
| FCF MarginFCF ÷ Revenue | +16.6% | +25.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +38.7% | +4.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -21.4% | +30.8% |
Valuation Metrics
TAL leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 9.0x trailing earnings, TAL trades at a 36% valuation discount to PRDO's 14.2x P/E.
| Metric | ||
|---|---|---|
| Market CapShares × price | $771M | $2.2B |
| Enterprise ValueMkt cap + debt − cash | -$667M | $2.1B |
| Trailing P/EPrice ÷ TTM EPS | 9.05x | 14.23x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.12x | 12.04x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.09x |
| EV / EBITDAEnterprise value multiple | -16.38x | 8.97x |
| Price / SalesMarket cap ÷ Revenue | 0.34x | 2.55x |
| Price / BookPrice ÷ Book value/share | 0.20x | 2.34x |
| Price / FCFMarket cap ÷ FCF | 2.70x | 9.97x |
Profitability & Efficiency
PRDO leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
PRDO delivers a 17.2% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $5 for TAL. TAL carries lower financial leverage with a 0.09x debt-to-equity ratio, signaling a more conservative balance sheet compared to PRDO's 0.11x. On the Piotroski fundamental quality scale (0–9), PRDO scores 7/9 vs TAL's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +4.7% | +17.2% |
| ROA (TTM)Return on assets | +3.1% | +13.2% |
| ROICReturn on invested capital | -0.3% | +15.3% |
| ROCEReturn on capital employed | -0.2% | +17.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.09x | 0.11x |
| Net DebtTotal debt minus cash | -$1.6B | -$27M |
| Cash & Equiv.Liquid assets | $1.8B | $132M |
| Total DebtShort + long-term debt | $333M | $105M |
| Interest CoverageEBIT ÷ Interest expense | — | 50.21x |
Total Returns (Dividends Reinvested)
PRDO leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PRDO five years ago would be worth $29,850 today (with dividends reinvested), compared to $2,033 for TAL. Over the past 12 months, TAL leads with a +23.9% total return vs PRDO's +15.4%. The 3-year compound annual growth rate (CAGR) favors PRDO at 43.5% vs TAL's 26.7% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -0.8% | +18.9% |
| 1-Year ReturnPast 12 months | +23.9% | +15.4% |
| 3-Year ReturnCumulative with dividends | +103.2% | +195.8% |
| 5-Year ReturnCumulative with dividends | -79.7% | +198.5% |
| 10-Year ReturnCumulative with dividends | +27.3% | +505.6% |
| CAGR (3Y)Annualised 3-year return | +26.7% | +43.5% |
Risk & Volatility
PRDO leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
PRDO is the less volatile stock with a 0.48 beta — it tends to amplify market swings less than TAL's 0.96 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PRDO currently trades 89.5% from its 52-week high vs TAL's 85.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.96x | 0.48x |
| 52-Week HighHighest price in past year | $13.37 | $38.50 |
| 52-Week LowLowest price in past year | $9.04 | $26.66 |
| % of 52W HighCurrent price vs 52-week peak | +85.3% | +89.5% |
| RSI (14)Momentum oscillator 0–100 | 52.3 | 46.2 |
| Avg Volume (50D)Average daily shares traded | 3.3M | 584K |
Analyst Outlook
PRDO leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates TAL as "Hold" and PRDO as "Hold". Consensus price targets imply 57.9% upside for TAL (target: $18) vs -12.9% for PRDO (target: $30). PRDO is the only dividend payer here at 1.62% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $18.00 | $30.00 |
| # AnalystsCovering analysts | 28 | 9 |
| Dividend YieldAnnual dividend ÷ price | — | +1.6% |
| Dividend StreakConsecutive years of raises | 0 | 5 |
| Dividend / ShareAnnual DPS | — | $0.56 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.7% | +5.6% |
PRDO leads in 5 of 6 categories (Income & Cash Flow, Profitability & Efficiency). TAL leads in 1 (Valuation Metrics).
TAL vs PRDO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TAL or PRDO a better buy right now?
For growth investors, TAL Education Group (TAL) is the stronger pick with 51.
2% revenue growth year-over-year, versus 24. 2% for Perdoceo Education Corporation (PRDO). 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 TAL Education Group (TAL) a "Hold" — based on 28 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.
02Which has the better valuation — TAL or PRDO?
On trailing P/E, TAL Education Group (TAL) is the cheapest at 9.
0x versus Perdoceo Education Corporation at 14. 2x. On forward P/E, Perdoceo Education Corporation is actually cheaper at 12. 0x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — TAL or PRDO?
Over the past 5 years, Perdoceo Education Corporation (PRDO) delivered a total return of +198.
5%, compared to -79. 7% for TAL Education Group (TAL). Over 10 years, the gap is even starker: PRDO returned +505. 6% versus TAL's +27. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — TAL or PRDO?
By beta (market sensitivity over 5 years), Perdoceo Education Corporation (PRDO) is the lower-risk stock at 0.
48β versus TAL Education Group's 0. 96β — meaning TAL is approximately 99% more volatile than PRDO relative to the S&P 500. On balance sheet safety, TAL Education Group (TAL) carries a lower debt/equity ratio of 9% versus 11% for Perdoceo Education Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — TAL or PRDO?
By revenue growth (latest reported year), TAL Education Group (TAL) is pulling ahead at 51.
2% versus 24. 2% for Perdoceo Education Corporation (PRDO). On earnings-per-share growth, the picture is similar: TAL Education Group grew EPS 24. 7% year-over-year, compared to 10. 5% for Perdoceo Education Corporation. Over a 3-year CAGR, PRDO leads at 6. 8% 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.
06Which has better profit margins — TAL or PRDO?
Perdoceo Education Corporation (PRDO) is the more profitable company, earning 18.
9% net margin versus 3. 8% for TAL Education Group — meaning it keeps 18. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PRDO leads at 23. 2% versus -0. 3% for TAL. At the gross margin level — before operating expenses — PRDO leads at 71. 7%, 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.
07Is TAL or PRDO more undervalued right now?
On forward earnings alone, Perdoceo Education Corporation (PRDO) trades at 12.
0x forward P/E versus 18. 1x for TAL Education Group — 6. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TAL: 57. 9% to $18. 00.
08Which pays a better dividend — TAL or PRDO?
In this comparison, PRDO (1.
6% yield) pays a dividend. TAL does not pay a meaningful dividend and should not be held primarily for income.
09Is TAL or PRDO better for a retirement portfolio?
For long-horizon retirement investors, Perdoceo Education Corporation (PRDO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
48), 1. 6% yield, +505. 6% 10Y return). Both have compounded well over 10 years (PRDO: +505. 6%, 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.
10What are the main differences between TAL and PRDO?
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.
PRDO pays a dividend while TAL does 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.
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