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 $8.4B against $2.2B — 3.9× the size. New Oriental Education & Technology Group, Inc. trades at the lower P/E: 16.3× against 29.6×. New Oriental Education & Technology Group, Inc. grew revenue faster over the last twelve months: 20.6% against −0.70%. New Oriental Education & Technology Group, Inc. has the higher net margin (8.44% vs 3.55%) and the lower return on invested capital (0.00% vs 5.51%). Across the 20 metrics below, New Oriental Education & Technology Group, Inc. leads on 12 and McGraw Hill, Inc. on 8.

Valuation

Metric EDU MH Education & Training Services median
P/E 16.31 29.58 12.09
P/S 1.39 1.03 0.80
P/B 1.94 2.45 1.39
Price to free cash flow 82.16 25.83 7.31
EV/EBITDA 4.49 5.75 6.36
EV/Sales 0.53 2.14 0.58
Earnings yield 6.13% 3.38% 3.29%
Free cash flow yield 1.22% 3.87% 3.03%

Profitability

Metric EDU MH Education & Training Services median
Gross margin 54.31% 81.68% 55.03%
Operating margin 11.76% 13.43% 0.00%
Net margin 8.44% 3.55% 1.77%
Free cash flow margin 17.13% 4.00% 0.00%
Return on equity 0.00% 8.83% 0.00%
Return on assets 6.02% 1.26% 0.00%
Return on invested capital 0.00% 5.51% 0.00%

Growth

Metric EDU MH Education & Training Services median
Revenue growth (TTM) 20.55% (0.70%) 5.84%
EPS growth (last fiscal year) 30.26% 136.88% 14.71%
Revenue growth, 5-year CAGR 5.77% — 4.24%
Net income growth, 5-year CAGR 7.28% — 0.00%

Health

Metric EDU MH Education & Training Services median
Debt to equity 0.00 2.88 0.05
Current ratio 1.61 0.86 1.37
Net debt to EBITDA (6.44) 3.07 (0.04)

Dividend

Metric EDU MH Education & Training Services median
Dividend yield 1.11% — 2.64%
Payout ratio 0.18 — 0.26

Size

Metric EDU MH Education & Training Services median
Market cap 8.37b 2.15b 59.54m

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