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KO vs MH

KO
The Coca-Cola Company
BEARISH
Price
$75.44
Market Cap
$324.71B
Sector
Consumer Defensive
AI Confidence
85%
MH
McGraw Hill, Inc.
BEARISH
Price
$12.00
Market Cap
$2.29B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
KO
24.82
MH
--
Forward P/E
KO
21.85
MH
6.84
P/B Ratio
KO
10.09
MH
2.96
P/S Ratio
KO
6.77
MH
1.09
EV/EBITDA
KO
22.31
MH
7.72

Profitability

Gross Margin
KO
61.63%
MH
80.84%
Operating Margin
KO
24.66%
MH
8.02%
Profit Margin
KO
27.34%
MH
-3.37%
ROE
KO
43.32%
MH
-11.76%
ROA
KO
9.15%
MH
3.54%

Growth

Revenue Growth
KO
2.4%
MH
4.2%
Earnings Growth
KO
3.6%
MH
--

Financial Health

Debt/Equity
KO
1.4
MH
3.48
Current Ratio
KO
1.46
MH
0.83
Quick Ratio
KO
0.89
MH
0.59

Dividends

Dividend Yield
KO
2.73%
MH
--
Payout Ratio
KO
67.11%
MH
0.0%

AI Verdict

KO BEARISH

KO exhibits a significant disconnect between its current market price ($75.44) and its deterministic value markers, with a Piotroski F-Score of 3/9 indicating weak financial health trends. The stock trades at a massive premium to both its Graham Number ($22.43) and Intrinsic Value ($37.08), while a PEG ratio of 3.95 suggests severe overvaluation relative to its stagnant growth. Despite strong historical earnings beats and high ROE, the combination of bearish insider selling and a 0/100 technical trend signals a lack of immediate catalyst for upside.

Strengths
Exceptional Return on Equity (ROE) of 43.32%
Strong profit margins (27.34%) and gross margins (61.63%)
Consistent track record of beating earnings estimates over 25 quarters
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Weak operational health trend as indicated by a Piotroski F-Score of 3/9
Stagnant revenue growth (2.40% YoY) failing to justify the P/E multiple
MH BEARISH

The company exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a critical liquidity position with a current ratio of 0.83. Despite a 'Strong Buy' analyst consensus and a low forward P/E of 6.84, the fundamental health is compromised by high leverage (Debt/Equity of 3.48) and negative net profit margins. The technical trend is aggressively bearish, evidenced by a 16.3% drop in the last week and a -29.4% one-year return. The disconnect between analyst targets ($20.42) and the deterministic health scores suggests a high-risk value trap.

Strengths
Exceptionally high gross margins (80.84%)
Positive operating margin (8.02%)
Low forward P/E ratio (6.84) suggesting potential undervaluation
Risks
Critical financial health (Piotroski F-Score 2/9)
High leverage with Debt/Equity at 3.48
Liquidity risk indicated by Current Ratio (0.83) and Quick Ratio (0.59)

Compare Another Pair

KO vs MH: Head-to-Head Comparison

This page compares The Coca-Cola Company (KO) and McGraw Hill, Inc. (MH) 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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