Graham Holdings Company (GHC) vs Otter Tail Corporation (OTTR)

Graham Holdings Company and Otter Tail Corporation are both Conglomerates companies. Graham Holdings Company is the larger, with a market value of $5.0B against $3.8B — 1.3× the size. Graham Holdings Company trades at the lower P/E: 9.3× against 19.4×. Graham Holdings Company grew revenue faster over the last twelve months: 4.83% against 0.27%. Otter Tail Corporation has the higher net margin (14.8% vs 10.7%) and the higher return on invested capital (5.15% vs 3.64%). Both pay a dividend; Otter Tail Corporation yields more (2.50% vs 0.64%). Across the 22 metrics below, Graham Holdings Company leads on 15 and Otter Tail Corporation on 7.

Valuation

Metric GHC OTTR Conglomerates median
P/E 9.32 19.39 9.83
P/S 0.98 2.88 0.65
P/B 1.04 2.02 1.08
Price to free cash flow 20.10 n/m 15.10
EV/EBITDA 10.11 13.47 11.06
EV/Sales 0.91 3.54 1.27
Earnings yield 10.73% 5.16% 1.00%
Free cash flow yield 4.98% (1.85%) 0.00%

Profitability

Metric GHC OTTR Conglomerates median
Gross margin 29.95% 56.91% 30.37%
Operating margin 5.05% 17.13% 3.36%
Net margin 10.69% 14.83% 0.52%
Free cash flow margin 4.89% (5.32%) 0.00%
Return on equity 11.80% 10.68% 0.14%
Return on assets 6.88% 4.84% 0.00%
Return on invested capital 3.64% 5.15% 0.00%

Growth

Metric GHC OTTR Conglomerates median
Revenue growth (TTM) 4.83% 0.27% 5.03%
EPS growth (last fiscal year) (59.32%) (8.65%) 4.94%
Revenue growth, 5-year CAGR 11.20% 7.94% 6.01%
Net income growth, 5-year CAGR (0.54%) 23.55% 0.00%

Health

Metric GHC OTTR Conglomerates median
Debt to equity 0.19 0.67 0.46
Current ratio 1.86 1.71 1.71
Net debt to EBITDA (1.24) 1.43 1.17

Dividend

Metric GHC OTTR Conglomerates median
Dividend yield 0.64% 2.50% 2.67%
Payout ratio 0.06 0.49 0.30

Size

Metric GHC OTTR Conglomerates median
Market cap 4.95b 3.79b 391.34m

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