McGraw Hill, Inc. (MH) vs Twenty One Capital, Inc. (XXI)

McGraw Hill, Inc. and Twenty One Capital, Inc. are both Education & Training Services companies. Twenty One Capital, Inc. is the larger, with a market value of $3.5B against $2.2B — 1.6× the size. Twenty One Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; McGraw Hill, Inc. trades at 29.6×. McGraw Hill, Inc. has the higher net margin (3.55% vs 0.00%) and the higher return on invested capital (5.51% vs −0.86%). Across the 13 metrics below, McGraw Hill, Inc. leads on 9 and Twenty One Capital, Inc. on 4.

Valuation

Metric MH XXI Education & Training Services median
P/E 29.58 n/m 12.09
P/S 1.03 n/m 0.80
P/B 2.45 1.39 1.39
Price to free cash flow 25.83 n/m 7.31
EV/EBITDA 5.75 n/m 6.36
EV/Sales 2.14 n/m 0.58
Earnings yield 3.38% (101.23%) 3.29%
Free cash flow yield 3.87% (0.46%) 3.03%

Profitability

Metric MH XXI Education & Training Services median
Gross margin 81.68% — 55.03%
Operating margin 13.43% 0.00% 0.00%
Net margin 3.55% 0.00% 1.77%
Free cash flow margin 4.00% 0.00% 0.00%
Return on equity 8.83% (137.05%) 0.00%
Return on assets 1.26% (107.69%) 0.00%
Return on invested capital 5.51% (0.86%) 0.00%

Growth

Metric MH XXI Education & Training Services median
Revenue growth (TTM) (0.70%) — 5.84%
EPS growth (last fiscal year) 136.88% (1,639.74%) 14.71%
Revenue growth, 5-year CAGR — — 4.24%
Net income growth, 5-year CAGR — — 0.00%

Health

Metric MH XXI Education & Training Services median
Debt to equity 2.88 0.22 0.05
Current ratio 0.86 71.05 1.37
Net debt to EBITDA 3.07 (25.23) (0.04)

Dividend

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

Size

Metric MH XXI Education & Training Services median
Market cap 2.15b 3.48b 59.54m

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