Grand Canyon Education Inc (LOPE)vsMcGraw Hill, Inc. (MH)
LOPE
Grand Canyon Education Inc
$159.31
+5.89%
CONSUMER DEFENSIVE · Cap: $3.72B
MH
McGraw Hill, Inc.
$11.20
+2.00%
CONSUMER DEFENSIVE · Cap: $1.83B
Smart Verdict
WallStSmart Research — data-driven comparison
McGraw Hill, Inc. generates 87% more annual revenue ($2.10B vs $1.13B). LOPE leads profitability with a 19.5% profit margin vs 1.7%. LOPE trades at a lower P/E of 17.6x. LOPE earns a higher WallStSmart Score of 71/100 (B).
LOPE
Strong Buy71
out of 100
Grade: B
MH
Hold40
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-54.7%
Fair Value
$103.59
Current Price
$159.31
$55.72 premium
Intrinsic value data unavailable for MH.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Strong operational efficiency at 30.9%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
No major concerns identified
0.0% earnings growth
Smaller company, higher risk/reward
1.7% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : LOPE
The strongest argument for LOPE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.5% and operating margin at 30.9%. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bull Case : MH
The strongest argument for MH centers on Price/Book.
Bear Case : LOPE
No major red flags identified for LOPE, but monitor valuation.
Bear Case : MH
The primary concerns for MH are EPS Growth, Market Cap, Profit Margin. A P/E of 50.5x leaves little room for execution misses. Debt-to-equity of 3.64 is elevated, increasing financial risk.
Key Dynamics to Monitor
LOPE profiles as a mature stock while MH is a value play — different risk/reward profiles.
LOPE is growing revenue faster at 6.7% — sustainability is the question.
LOPE generates stronger free cash flow (80M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LOPE scores higher overall (71/100 vs 40/100), backed by strong 19.5% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Grand Canyon Education Inc
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
Grand Canyon Education, Inc. provides educational services to colleges and universities in the United States. The company is headquartered in Phoenix, Arizona.
McGraw Hill, Inc.
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.
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