Comparing LAIX (NYSE:LAIX) & TAL Education Group (NYSE:TAL)

LAIX (NYSE:LAIX) and TAL Education Group (NYSE:TAL) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for LAIX and TAL Education Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LAIX 0 2 0 0 2.00
TAL Education Group 0 4 5 0 2.56

LAIX presently has a consensus price target of $6.50, indicating a potential upside of 107.01%. TAL Education Group has a consensus price target of $31.98, indicating a potential downside of 17.74%. Given LAIX’s higher probable upside, research analysts plainly believe LAIX is more favorable than TAL Education Group.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LAIX $92.68 million 1.62 -$70.99 million ($2.79) -1.13
TAL Education Group $2.56 billion 8.60 $367.24 million $0.61 63.72

TAL Education Group has higher revenue and earnings than LAIX. LAIX 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.

Profitability

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

Net Margins Return on Equity Return on Assets
LAIX -49.16% -303.35% -42.85%
TAL Education Group 10.80% 13.33% 7.46%

Institutional and Insider Ownership

12.4% of LAIX shares are owned by institutional investors. Comparatively, 59.0% of TAL Education Group shares are owned by institutional investors. 1.8% of TAL Education Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

TAL Education Group beats LAIX on 12 of the 13 factors compared between the two stocks.

LAIX Company Profile

LAIX Inc., an artificial intelligence company, provides online English learning services through Liulishuo mobile app in the People's Republic of China. It is also involved in the artificial intelligence lab operation; technology development; and loan arrangement activities. The company was formerly known as LingoChamp Inc. LAIX Inc. was founded in 2013 and is headquartered in Shanghai, the People's Republic of China.

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.

Receive News & Ratings for LAIX Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LAIX and related companies with MarketBeat.com's FREE daily email newsletter.