Graham Holdings Company (GHC) vs McGraw Hill, Inc. (MH)

Graham Holdings Company and McGraw Hill, Inc. are both Education & Training Services companies. Graham Holdings Company is the larger, with a market value of $4.9B against $2.6B — 1.9× the size. Graham Holdings Company trades at the lower P/E: 9.2× against 25.5×. Graham Holdings Company grew revenue faster over the last twelve months: 4.83% against 0.14%. Graham Holdings Company has the higher net margin (10.7% vs 4.38%) and the lower return on invested capital (3.64% vs 5.81%). Across the 20 metrics below, Graham Holdings Company leads on 11 and McGraw Hill, Inc. on 9.

Valuation

Metric GHC MH Education & Training Services median
P/E 9.21 25.46 11.19
P/S 0.97 1.15 0.92
P/B 1.03 3.09 1.63
Price to free cash flow 19.86 11.86 9.62
EV/EBITDA 9.98 6.23 7.02
EV/Sales 0.89 2.27 0.82
Earnings yield 10.85% 3.93% 3.17%
Free cash flow yield 5.03% 8.43% 2.30%

Profitability

Metric GHC MH Education & Training Services median
Gross margin 29.95% 81.65% 54.64%
Operating margin 5.05% 13.93% 0.00%
Net margin 10.69% 4.38% 3.29%
Free cash flow margin 4.89% 9.70% 0.00%
Return on equity 11.80% 17.30% 0.00%
Return on assets 6.88% 1.68% 0.00%
Return on invested capital 3.64% 5.81% 0.00%

Growth

Metric GHC MH Education & Training Services median
Revenue growth (TTM) 4.83% 0.14% 6.97%
EPS growth (last fiscal year) (59.32%) 136.88% —
Revenue growth, 5-year CAGR 11.20% — 4.27%
Net income growth, 5-year CAGR (0.54%) — 0.00%

Health

Metric GHC MH Education & Training Services median
Debt to equity 0.19 3.27 0.08
Current ratio 1.86 0.78 1.33
Net debt to EBITDA (1.24) 3.07 (0.15)

Dividend

Metric GHC MH Education & Training Services median
Dividend yield 0.94% — 1.13%
Payout ratio 0.14 — 0.00

Size

Metric GHC MH Education & Training Services median
Market cap 4.85b 2.62b 68.93m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack