McGraw Hill, Inc. (MH) vs TAL Education Group (TAL)

McGraw Hill, Inc. and TAL Education Group are both Education & Training Services companies. TAL Education Group is the larger, with a market value of $3.4B against $2.2B — 1.6× the size. TAL Education Group trades at the lower P/E: 7.6× against 29.6×. TAL Education Group grew revenue faster over the last twelve months: 25.4% against −0.70%. TAL Education Group has the higher net margin (22.1% vs 3.55%) and the higher return on invested capital (27.3% vs 5.51%). Across the 20 metrics below, TAL Education Group leads on 15 and McGraw Hill, Inc. on 5.

Valuation

Metric MH TAL Education & Training Services median
P/E 29.58 7.62 12.09
P/S 1.03 1.69 0.80
P/B 2.45 1.35 1.39
Price to free cash flow 25.83 27.31 7.31
EV/EBITDA 5.75 9.23 6.36
EV/Sales 2.14 1.50 0.58
Earnings yield 3.38% 13.12% 3.29%
Free cash flow yield 3.87% 3.66% 3.03%

Profitability

Metric MH TAL Education & Training Services median
Gross margin 81.68% 56.89% 55.03%
Operating margin 13.43% 16.20% 0.00%
Net margin 3.55% 22.13% 1.77%
Free cash flow margin 4.00% 18.37% 0.00%
Return on equity 8.83% 19.35% 0.00%
Return on assets 1.26% 12.15% 0.00%
Return on invested capital 5.51% 27.33% 0.00%

Growth

Metric MH TAL Education & Training Services median
Revenue growth (TTM) (0.70%) 25.35% 5.84%
EPS growth (last fiscal year) 136.88% 557.14% 14.71%
Revenue growth, 5-year CAGR — (7.72%) 4.24%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric MH TAL Education & Training Services median
Debt to equity 2.88 0.01 0.05
Current ratio 0.86 1.84 1.37
Net debt to EBITDA 3.07 (9.83) (0.04)

Dividend

Metric MH TAL Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric MH TAL Education & Training Services median
Market cap 2.15b 3.40b 59.54m

Compare with another peer

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