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 $8.2B against $4.9B — 1.7× the size. Graham Holdings Company trades at the lower P/E: 9.2× against 18.3×. 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%). Across the 22 metrics below, Graham Holdings Company leads on 13 and New Oriental Education & Technology Group, Inc. on 9.

Valuation

Metric EDU GHC Education & Training Services median
P/E 18.32 9.21 11.19
P/S 1.57 0.97 0.92
P/B 2.06 1.03 1.63
Price to free cash flow 90.09 19.86 9.62
EV/EBITDA 6.11 9.98 7.02
EV/Sales 0.69 0.89 0.82
Earnings yield 5.46% 10.85% 3.17%
Free cash flow yield 1.11% 5.03% 2.30%

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% 3.29%
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%) —
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 0.08
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 — 0.94% 1.13%
Payout ratio 0.00 0.14 0.00

Size

Metric EDU GHC Education & Training Services median
Market cap 8.22b 4.85b 68.93m

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