TAL vs. EDU

Last updated Jun 23, 2026

TAL (TAL Education Group) and EDU (New Oriental Education & Technology Group Inc.) are both stocks. Both operate in the Education & Training Services industry within the Consumer Defensive sector. Over the past 10 years, TAL returned -0.11%/yr vs 1.37%/yr for EDU. A 0.57 correlation means they provide meaningful diversification when combined.

Performance

TAL vs. EDU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in TAL Education Group (TAL) and New Oriental Education & Technology Group Inc. (EDU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TAL achieves a -13.20% return, which is significantly higher than EDU's -16.79% return. Over the past 10 years, TAL has underperformed EDU with an annualized return of -0.11%, while EDU has yielded a comparatively higher 1.37% annualized return.

TAL

• 1D: 3.05%
• 1M: -3.07%
• YTD: -13.20%
• 6M: -14.22%
• 1Y: -8.41%
• 3Y*: 19.21%
• 5Y*: -16.58%
• 10Y*: -0.11%

EDU

• 1D: 0.53%
• 1M: -2.52%
• YTD: -16.79%
• 6M: -18.01%
• 1Y: -0.63%
• 3Y*: 8.52%
• 5Y*: -10.42%
• 10Y*: 1.37%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TAL vs. EDU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TAL TAL Education Group	-13.20%	8.88%	-20.67%	79.15%	79.39%	-94.50%	48.36%	80.66%	-10.20%	155.11%
EDU New Oriental Education & Technology Group Inc.	-16.79%	-13.27%	-11.55%	110.45%	65.81%	-88.70%	53.25%	121.22%	-41.69%	124.46%

Correlation

The correlation between TAL and EDU is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Oct 20, 2010	0.57

The correlation between TAL and EDU shifts across timeframes, from 0.52 (1 year) to 0.66 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TAL : $1.77B EDU : $7.23B
EPS TAL : $2.82 EDU : $2.63
PE Ratio TAL : 3.36 EDU : 17.18
PEG Ratio TAL : 0.08 EDU : 2.67
PS Ratio TAL : 0.59 EDU : 1.34
PB Ratio TAL : 0.47 EDU : 1.77
Total Revenue (TTM) TAL : $3.02B EDU : $5.39B
Gross Profit (TTM) TAL : $1.67B EDU : $2.96B
EBITDA (TTM) TAL : $274.66M EDU : $716.97M

Return for Risk

TAL vs. EDU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TAL

TAL Risk / Return Rank: 32
TAL Sharpe Ratio Rank: 34
TAL Sortino Ratio Rank: 32
TAL Omega Ratio Rank: 32
TAL Calmar Ratio Rank: 33
TAL Martin Ratio Rank: 30

EDU

EDU Risk / Return Rank: 40
EDU Sharpe Ratio Rank: 41
EDU Sortino Ratio Rank: 38
EDU Omega Ratio Rank: 37
EDU Calmar Ratio Rank: 41
EDU Martin Ratio Rank: 41

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TAL vs. EDU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TAL Education Group (TAL) and New Oriental Education & Technology Group Inc. (EDU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TAL	EDU	Difference
Sharpe ratio: Return per unit of total volatility	-0.19	-0.02	-0.18
Sortino ratio: Return per unit of downside risk	0.02	0.26	-0.24
Omega ratio: Gain probability vs. loss probability	1.00	1.03	-0.03
Calmar ratio: Return relative to maximum drawdown	-0.29	-0.02	-0.27
Martin ratio: Return relative to average drawdown	-0.65	-0.05	-0.60

TAL vs. EDU - Sharpe Ratio Comparison

The current TAL Sharpe Ratio is -0.19, which is lower than the EDU Sharpe Ratio of -0.02. The chart below compares the historical Sharpe Ratios of TAL and EDU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TAL vs. EDU - Drawdown Comparison

The maximum TAL drawdown since its inception was -98.06%, roughly equal to the maximum EDU drawdown of -95.61%. Use the drawdown chart below to compare losses from any high point for TAL and EDU.

Drawdown Indicators

	TAL	EDU	Difference
Max Drawdown Largest peak-to-trough decline	-98.06%	-95.61%	-2.45%
Max Drawdown (1Y) Largest decline over 1 year	-29.12%	-28.28%	-0.84%
Max Drawdown (3Y) Largest decline over 3 years	-51.31%	-56.77%	+5.46%
Max Drawdown (5Y) Largest decline over 5 years	-93.12%	-89.89%	-3.23%
Max Drawdown (10Y) Largest decline over 10 years	-98.06%	-95.61%	-2.45%
Current Drawdown Current decline from peak	-89.50%	-76.23%	-13.27%
Average Drawdown Average peak-to-trough decline	-41.94%	-33.08%	-8.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.94%	13.00%	-0.06%

Volatility

TAL vs. EDU - Volatility Comparison

TAL Education Group (TAL) and New Oriental Education & Technology Group Inc. (EDU) have volatilities of 8.48% and 8.53%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TAL	EDU	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.48%	8.53%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	33.62%	23.25%	+10.37%
Volatility (1Y) Calculated over the trailing 1-year period	44.05%	37.54%	+6.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	84.88%	70.97%	+13.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	69.34%	59.58%	+9.76%

Dividends

TAL vs. EDU - Dividend Comparison

TAL has not paid dividends to shareholders, while EDU's dividend yield for the trailing twelve months is around 2.65%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EDU New Oriental Education & Technology Group Inc.	2.65%	1.09%	0.93%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.46%	0.00%	1.28%
TAL TAL Education Group	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.27%	1.28%	4.07%

Financials

TAL vs. EDU - Profitability Comparison

The chart below illustrates the profitability comparison between TAL Education Group and New Oriental Education & Technology Group Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

TAL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, TAL Education Group reported a gross profit of 430.24M and revenue of 808.04M. Therefore, the gross margin over that period was 53.2%.

EDU - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, New Oriental Education & Technology Group Inc. reported a gross profit of 766.52M and revenue of 1.43B. Therefore, the gross margin over that period was 53.7%.

TAL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, TAL Education Group reported an operating income of 72.98M and revenue of 808.04M, resulting in an operating margin of 9.0%.

EDU - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, New Oriental Education & Technology Group Inc. reported an operating income of 181.59M and revenue of 1.43B, resulting in an operating margin of 12.7%.

TAL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, TAL Education Group reported a net income of 246.51M and revenue of 808.04M, resulting in a net margin of 30.5%.

EDU - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, New Oriental Education & Technology Group Inc. reported a net income of 127.71M and revenue of 1.43B, resulting in a net margin of 9.0%.

Frequently Asked Questions

Can I hold both TAL and EDU in my portfolio?

TAL and EDU have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TAL or EDU?

EDU has higher volatility (8.53%) compared to TAL (8.48%). In terms of maximum drawdown, TAL dropped -98.06% vs EDU's -95.61%.

Which has better risk-adjusted returns?

EDU currently has the higher Sharpe Ratio (-0.02 vs -0.19), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.