Regis (NASDAQ:RGS) and TAL Education Group (NYSE:TAL) Financial Analysis

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

Risk & Volatility

TAL Education Group has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Regis has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for TAL Education Group and Regis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAL Education Group	0	2	1	1	2.75
Regis	0	1	1	0	2.50

TAL Education Group currently has a consensus price target of $15.05, indicating a potential upside of 48.79%. Regis has a consensus price target of $42.00, indicating a potential upside of 71.57%. Given Regis’ higher probable upside, analysts clearly believe Regis is more favorable than TAL Education Group.

Insider and Institutional Ownership

37.8% of TAL Education Group shares are owned by institutional investors. Comparatively, 31.5% of Regis shares are owned by institutional investors. 1.8% of TAL Education Group shares are owned by company insiders. Comparatively, 8.0% of Regis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TAL Education Group	22.13%	18.96%	11.64%
Regis	3.09%	4.10%	1.36%

Valuation and Earnings

This table compares TAL Education Group and Regis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAL Education Group	$3.01 billion	1.86	$530.75 million	$1.31	7.72
Regis	$219.87 million	0.28	$6.94 million	$2.42	10.12

TAL Education Group has higher revenue and earnings than Regis. TAL Education Group is trading at a lower price-to-earnings ratio than Regis, indicating that it is currently the more affordable of the two stocks.

Summary

TAL Education Group beats Regis on 9 of the 14 factors compared between the two stocks.

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.

About Regis

Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, the United Kingdom, Canada, and Puerto Rico. The company operates in two segments, Franchise Salons and Company-owned Salons. Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company also offers OpenSalon Pro, a back-office salon management system; and Opensalon mobile application. Regis Corporation operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, and First Choice Haircutters names. As of June 30, 2021, the company operated 5,917 salons, such as 5,563 franchised salons, 276 company-owned salons, and 78 non-controlling ownership salons. It also operates accredited cosmetology schools. The company was founded in 1922 and is headquartered in Minneapolis, Minnesota.