Graham Holdings Company (GHC) vs TAL Education Group (TAL)

Graham Holdings Company and TAL Education Group are both Education & Training Services companies. Graham Holdings Company is the larger, with a market value of $4.9B against $4.1B — 1.2× the size. TAL Education Group trades at the lower P/E: 7.3× against 9.2×. TAL Education Group grew revenue faster over the last twelve months: 32.4% against 4.83%. TAL Education Group has the higher net margin (28.4% vs 10.7%) and the higher return on invested capital (26.8% vs 3.64%). Across the 22 metrics below, TAL Education Group leads on 15 and Graham Holdings Company on 7.

Valuation

Metric GHC TAL Education & Training Services median
P/E 9.21 7.30 11.19
P/S 0.97 2.08 0.92
P/B 1.03 1.63 1.63
Price to free cash flow 19.86 20.30 9.62
EV/EBITDA 9.98 9.17 7.02
EV/Sales 0.89 1.15 0.82
Earnings yield 10.85% 13.70% 3.17%
Free cash flow yield 5.03% 4.93% 2.30%

Profitability

Metric GHC TAL Education & Training Services median
Gross margin 29.95% 56.02% 54.64%
Operating margin 5.05% 12.50% 0.00%
Net margin 10.69% 28.43% 3.29%
Free cash flow margin 4.89% 22.93% 0.00%
Return on equity 11.80% 23.73% 0.00%
Return on assets 6.88% 14.54% 0.00%
Return on invested capital 3.64% 26.82% 0.00%

Growth

Metric GHC TAL Education & Training Services median
Revenue growth (TTM) 4.83% 32.40% 6.97%
EPS growth (last fiscal year) (59.32%) 557.14% —
Revenue growth, 5-year CAGR 11.20% (7.28%) 4.27%
Net income growth, 5-year CAGR (0.54%) 0.00% 0.00%

Health

Metric GHC TAL Education & Training Services median
Debt to equity 0.19 0.00 0.08
Current ratio 1.86 1.69 1.33
Net debt to EBITDA (1.24) (9.83) (0.15)

Dividend

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

Size

Metric GHC TAL Education & Training Services median
Market cap 4.85b 4.08b 68.93m

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