New Oriental Education & Technology Group, Inc. (EDU) vs McGraw Hill, Inc. (MH)

New Oriental Education & Technology Group, Inc. and McGraw Hill, Inc. are both Education & Training Services companies. New Oriental Education & Technology Group, Inc. is the larger, with a market value of $8.2B against $2.6B — 3.1× the size. New Oriental Education & Technology Group, Inc. trades at the lower P/E: 18.3× against 25.5×. New Oriental Education & Technology Group, Inc. grew revenue faster over the last twelve months: 15.5% against 0.14%. New Oriental Education & Technology Group, Inc. has the higher net margin (8.39% vs 4.38%) and the lower return on invested capital (0.00% vs 5.81%). Across the 20 metrics below, New Oriental Education & Technology Group, Inc. leads on 11 and McGraw Hill, Inc. on 9.

Valuation

Metric EDU MH Education & Training Services median
P/E 18.32 25.46 11.19
P/S 1.57 1.15 0.92
P/B 2.06 3.09 1.63
Price to free cash flow 90.09 11.86 9.62
EV/EBITDA 6.11 6.23 7.02
EV/Sales 0.69 2.27 0.82
Earnings yield 5.46% 3.93% 3.17%
Free cash flow yield 1.11% 8.43% 2.30%

Profitability

Metric EDU MH Education & Training Services median
Gross margin 54.64% 81.65% 54.64%
Operating margin 11.36% 13.93% 0.00%
Net margin 8.39% 4.38% 3.29%
Free cash flow margin 1.75% 9.70% 0.00%
Return on equity 11.68% 17.30% 0.00%
Return on assets 5.73% 1.68% 0.00%
Return on invested capital 0.00% 5.81% 0.00%

Growth

Metric EDU MH Education & Training Services median
Revenue growth (TTM) 15.53% 0.14% 6.97%
EPS growth (last fiscal year) 30.26% 136.88% —
Revenue growth, 5-year CAGR 5.77% — 4.27%
Net income growth, 5-year CAGR 7.28% — 0.00%

Health

Metric EDU MH Education & Training Services median
Debt to equity 0.00 3.27 0.08
Current ratio 1.50 0.78 1.33
Net debt to EBITDA (6.44) 3.07 (0.15)

Dividend

Metric EDU MH Education & Training Services median
Dividend yield — — 1.13%
Payout ratio 0.00 — 0.00

Size

Metric EDU MH Education & Training Services median
Market cap 8.22b 2.62b 68.93m

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