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 $4.1B against $2.6B — 1.6× the size. TAL Education Group trades at the lower P/E: 7.3× against 25.5×. TAL Education Group grew revenue faster over the last twelve months: 32.4% against 0.14%. TAL Education Group has the higher net margin (28.4% vs 4.38%) and the higher return on invested capital (26.8% vs 5.81%). Across the 20 metrics below, TAL Education Group leads on 14 and McGraw Hill, Inc. on 6.

Valuation

Metric MH TAL Education & Training Services median
P/E 25.46 7.30 11.19
P/S 1.15 2.08 0.92
P/B 3.09 1.63 1.63
Price to free cash flow 11.86 20.30 9.62
EV/EBITDA 6.23 9.17 7.02
EV/Sales 2.27 1.15 0.82
Earnings yield 3.93% 13.70% 3.17%
Free cash flow yield 8.43% 4.93% 2.30%

Profitability

Metric MH TAL Education & Training Services median
Gross margin 81.65% 56.02% 54.64%
Operating margin 13.93% 12.50% 0.00%
Net margin 4.38% 28.43% 3.29%
Free cash flow margin 9.70% 22.93% 0.00%
Return on equity 17.30% 23.73% 0.00%
Return on assets 1.68% 14.54% 0.00%
Return on invested capital 5.81% 26.82% 0.00%

Growth

Metric MH TAL Education & Training Services median
Revenue growth (TTM) 0.14% 32.40% 6.97%
EPS growth (last fiscal year) 136.88% 557.14% —
Revenue growth, 5-year CAGR — (7.28%) 4.27%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric MH TAL Education & Training Services median
Debt to equity 3.27 0.00 0.08
Current ratio 0.78 1.69 1.33
Net debt to EBITDA 3.07 (9.83) (0.15)

Dividend

Metric MH TAL Education & Training Services median
Dividend yield — — 1.13%
Payout ratio — 0.00 0.00

Size

Metric MH TAL Education & Training Services median
Market cap 2.62b 4.08b 68.93m

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