New Oriental Education & Technology Group, Inc. (EDU) vs Graham Holdings Company (GHC)

New Oriental Education & Technology Group, Inc. and Graham Holdings Company are both Education & Training Services companies. New Oriental Education & Technology Group, Inc. is the larger, with a market value of $8.4B against $5.1B — 1.7× the size. Graham Holdings Company trades at the lower P/E: 9.6× against 20.2×. New Oriental Education & Technology Group, Inc. grew revenue faster over the last twelve months: 15.5% against 4.83%. Graham Holdings Company has the higher net margin (10.7% vs 8.39%) and the higher return on invested capital (3.64% vs 0.00%). Both pay a dividend; New Oriental Education & Technology Group, Inc. yields more (0.99% vs 0.62%). Across the 23 metrics below, Graham Holdings Company leads on 13 and New Oriental Education & Technology Group, Inc. on 10.

Valuation

Metric EDU GHC Education & Training Services median
P/E 20.23 9.60 13.22
P/S 1.70 1.01 0.99
P/B 2.22 1.07 1.62
Price to free cash flow 97.12 20.70 10.06
EV/EBITDA 6.90 10.43 8.56
EV/Sales 0.78 0.93 0.78
Earnings yield 4.94% 10.42% 3.17%
Free cash flow yield 1.03% 4.83% 2.81%

Profitability

Metric EDU GHC Education & Training Services median
Gross margin 54.64% 29.95% 54.64%
Operating margin 11.36% 5.05% 0.00%
Net margin 8.39% 10.69% 2.98%
Free cash flow margin 1.75% 4.89% 0.00%
Return on equity 11.68% 11.80% 0.00%
Return on assets 5.73% 6.88% 0.00%
Return on invested capital 0.00% 3.64% 0.00%

Growth

Metric EDU GHC Education & Training Services median
Revenue growth (TTM) 15.53% 4.83% 6.97%
EPS growth (last fiscal year) 30.26% (59.32%) 15.68%
Revenue growth, 5-year CAGR 5.77% 11.20% 4.27%
Net income growth, 5-year CAGR 7.28% (0.54%) 0.00%

Health

Metric EDU GHC Education & Training Services median
Debt to equity 0.00 0.19 0.05
Current ratio 1.50 1.86 1.33
Net debt to EBITDA (6.44) (1.24) (0.15)

Dividend

Metric EDU GHC Education & Training Services median
Dividend yield 0.99% 0.62% 1.84%
Payout ratio 0.20 0.06 0.23

Size

Metric EDU GHC Education & Training Services median
Market cap 8.44b 5.08b 68.84m

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