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GHC vs PG

GHC
Graham Holdings Company
NEUTRAL
Price
$1161.64
Market Cap
$5.05B
Sector
Consumer Defensive
AI Confidence
85%
PG
The Procter & Gamble Company
BEARISH
Price
$145.71
Market Cap
$340.49B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
GHC
17.48
PG
21.59
Forward P/E
GHC
17.6
PG
20.23
P/B Ratio
GHC
1.06
PG
6.48
P/S Ratio
GHC
1.03
PG
3.99
EV/EBITDA
GHC
10.78
PG
14.76

Profitability

Gross Margin
GHC
29.93%
PG
51.19%
Operating Margin
GHC
6.55%
PG
26.3%
Profit Margin
GHC
5.95%
PG
19.3%
ROE
GHC
6.48%
PG
31.56%
ROA
GHC
2.92%
PG
10.9%

Growth

Revenue Growth
GHC
0.4%
PG
1.5%
Earnings Growth
GHC
-80.1%
PG
-5.4%

Financial Health

Debt/Equity
GHC
0.3
PG
0.69
Current Ratio
GHC
1.75
PG
0.72
Quick Ratio
GHC
1.41
PG
0.47

Dividends

Dividend Yield
GHC
0.65%
PG
2.92%
Payout Ratio
GHC
10.83%
PG
61.88%

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
PG BEARISH

PG exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but it is severely overvalued relative to its deterministic baselines. The current price of $145.71 represents a massive premium over the Graham Number ($58.45) and Intrinsic Value ($47.25), while a PEG ratio of 3.92 indicates the valuation is disconnected from its stagnant growth. Negative earnings growth (-5.40% YoY) combined with bearish insider activity and a 0/100 technical trend suggests significant downside risk despite the company's operational efficiency.

Strengths
Exceptional Return on Equity (ROE) of 31.56%
Strong gross margins (51.19%) and operating margins (26.30%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Extreme valuation premium over Graham and Intrinsic value estimates
Negative earnings growth (-5.40% YoY and -6.70% Q/Q)
Weak liquidity ratios with a Current Ratio of 0.72 and Quick Ratio of 0.47

Compare Another Pair

GHC vs PG: Head-to-Head Comparison

This page compares Graham Holdings Company (GHC) and The Procter & Gamble Company (PG) 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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