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GHC vs LW

GHC
Graham Holdings Company
NEUTRAL
Price
$1161.64
Market Cap
$5.05B
Sector
Consumer Defensive
AI Confidence
85%
LW
Lamb Weston Holdings, Inc.
BEARISH
Price
$43.03
Market Cap
$5.94B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
GHC
17.48
LW
20.2
Forward P/E
GHC
17.6
LW
14.36
P/B Ratio
GHC
1.06
LW
3.27
P/S Ratio
GHC
1.03
LW
0.91
EV/EBITDA
GHC
10.78
LW
8.5

Profitability

Gross Margin
GHC
29.93%
LW
20.66%
Operating Margin
GHC
6.55%
LW
10.93%
Profit Margin
GHC
5.95%
LW
4.61%
ROE
GHC
6.48%
LW
17.36%
ROA
GHC
2.92%
LW
6.34%

Growth

Revenue Growth
GHC
0.4%
LW
2.9%
Earnings Growth
GHC
-80.1%
LW
-62.2%

Financial Health

Debt/Equity
GHC
0.3
LW
2.2
Current Ratio
GHC
1.75
LW
1.46
Quick Ratio
GHC
1.41
LW
0.57

Dividends

Dividend Yield
GHC
0.65%
LW
3.53%
Payout Ratio
GHC
10.83%
LW
69.95%

AI Verdict

GHC NEUTRAL

GHC presents a contradictory profile: it is fundamentally stable but operationally stagnating. The Piotroski F-Score of 4/9 indicates stable health, and the stock trades below its Graham Number ($1282.03), suggesting defensive value. However, this is severely offset by a catastrophic -80.10% YoY earnings collapse and stagnant revenue growth (0.40%), indicating a significant deterioration in profitability. While the balance sheet is exceptionally clean with low debt, the bearish technical trend and high PEG ratio suggest the stock is currently a value trap.

Strengths
Very low Debt/Equity ratio (0.30) indicating minimal insolvency risk
Trading near book value (P/B 1.06), providing a strong valuation floor
Diversified business portfolio across healthcare, automotive, and education
Risks
Severe earnings contraction (-80.10% YoY) suggesting operational distress
Stagnant revenue growth (0.40% YoY) indicating a lack of scalability
Extremely high PEG ratio (4.04) showing price is disconnected from growth
LW BEARISH

Lamb Weston exhibits significant fundamental deterioration, highlighted by a Piotroski F-Score of 4/9 (Stable/Weak) and a severe earnings collapse of -62.20% YoY. The stock is trading at a substantial premium to its Graham Number ($25.10) and Intrinsic Value ($14.91), suggesting a lack of valuation support. While analysts maintain a 'Buy' rating, the technical trend is 0/100 (Bearish) and the company's high Debt/Equity ratio (2.20) combined with a low Quick Ratio (0.57) indicates mounting financial pressure.

Strengths
Strong ROE of 17.36% indicating efficient equity utilization
Consistent history of beating earnings estimates in recent quarters
Operates in the Consumer Defensive sector providing some recessionary hedge
Risks
Severe earnings contraction (-62.20% YoY) indicating operational distress
High leverage with a Debt/Equity ratio of 2.20
Poor liquidity indicated by a Quick Ratio of 0.57

Compare Another Pair

GHC vs LW: Head-to-Head Comparison

This page compares Graham Holdings Company (GHC) and Lamb Weston Holdings, Inc. (LW) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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