Critical Survey: TAL Education Group (NYSE:TAL) and Beachbody (NASDAQ:BODI)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beachbody	1	2	3	0	2.33
TAL Education Group	0	2	1	1	2.75

Beachbody presently has a consensus target price of $14.33, suggesting a potential upside of 191.62%. TAL Education Group has a consensus target price of $14.80, suggesting a potential upside of 23.59%. Given Beachbody’s higher probable upside, equities analysts clearly believe Beachbody is more favorable than TAL Education Group.

Institutional & Insider Ownership

74.5% of Beachbody shares are owned by institutional investors. Comparatively, 37.8% of TAL Education Group shares are owned by institutional investors. 42.4% of Beachbody shares are owned by company insiders. Comparatively, 1.8% of TAL Education Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Beachbody and TAL Education Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beachbody	$251.73 million	0.14	-$2.86 million	$1.63	3.02
TAL Education Group	$3.01 billion	2.20	$530.75 million	$1.61	7.44

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

Risk & Volatility

Beachbody has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Beachbody	5.68%	44.34%	9.87%
TAL Education Group	28.43%	24.55%	15.08%

Summary

TAL Education Group beats Beachbody on 8 of the 15 factors compared between the two stocks.

About Beachbody

The Beachbody Company, Inc. operates as a subscription health and wellness company that provides fitness, nutrition, and stress-reducing programs in the United States and internationally. The company operates Beachbody on Demand, a digital subscription platform that provides access to a library of live and on-demand fitness and nutrition content; and Beachbody on Demand Interactive (BODi) for live fitness and nutrition programs. It also offers nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recover, and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; supplements under the LADDER brand; connected fitness products; and BODi Bike Studio, a package subscription to BODi with a bike and accessories. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.

About TAL Education Group

TAL Education Group provides K-12 after-school tutoring services in the People’s Republic of China. It provides learning services primarily through small-classes services; personalized premium services; and learning content solutions, such as print books, smart books, mobile apps, and AI-driven learning devices. The company also operates www.xueersi.com, an online education platform; provides investment management and consulting services; develops and sells software and networks, as well as related consulting services; and sells educational materials and products. It offers its services under the Haoweilai and Think Academy brands. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People’s Republic of China.