WallStSmart

Grand Canyon Education Inc (LOPE)vsMcGraw Hill, Inc. (MH)

VS

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 Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 9.5Value: 6.0Quality: 8.5
Piotroski: 4/9Altman Z: 8.01

MH

Hold

40

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 6/9Altman Z: 0.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LOPESignificantly Overvalued (-54.7%)

Margin of Safety

-54.7%

Fair Value

$103.59

Current Price

$159.31

$55.72 premium

UndervaluedFair: $103.59Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LOPE6 strengths · Avg: 9.2/10
Return on EquityProfitability
31.6%10/10

Every $100 of equity generates 32 in profit

Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Altman Z-ScoreHealth
8.0110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.928/10

Growing faster than its price suggests

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

MH1 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

LOPE0 concerns · Avg: 0/10

No major concerns identified

MH4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.83B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

P/E RatioValuation
50.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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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