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MH vs PRDO

MH
McGraw Hill, Inc.
BEARISH
Price
$12.00
Market Cap
$2.29B
Sector
Consumer Defensive
AI Confidence
85%
PRDO
Perdoceo Education Corporation
NEUTRAL
Price
$34.34
Market Cap
$2.15B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
MH
--
PRDO
14.19
Forward P/E
MH
6.84
PRDO
10.5
P/B Ratio
MH
2.96
PRDO
2.21
P/S Ratio
MH
1.09
PRDO
2.54
EV/EBITDA
MH
7.72
PRDO
6.91

Profitability

Gross Margin
MH
80.84%
PRDO
79.55%
Operating Margin
MH
8.02%
PRDO
19.81%
Profit Margin
MH
-3.37%
PRDO
18.9%
ROE
MH
-11.76%
PRDO
16.55%
ROA
MH
3.54%
PRDO
9.86%

Growth

Revenue Growth
MH
4.2%
PRDO
20.0%
Earnings Growth
MH
--
PRDO
19.0%

Financial Health

Debt/Equity
MH
3.48
PRDO
0.12
Current Ratio
MH
0.83
PRDO
5.06
Quick Ratio
MH
0.59
PRDO
4.75

Dividends

Dividend Yield
MH
--
PRDO
1.75%
Payout Ratio
MH
0.0%
PRDO
23.14%

AI Verdict

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)
PRDO NEUTRAL

PRDO presents a dichotomy between strong fundamental value and bearish sentiment. The Piotroski F-Score of 4/9 indicates stable financial health, supported by an exceptionally low Debt/Equity ratio (0.12) and high liquidity (Current Ratio 5.06). While the valuation is highly attractive with a PEG ratio of 0.74 and consistent earnings beats over 25 quarters, the outlook is tempered by a 0/100 technical trend and aggressive insider selling by the CEO and CFO. The stock is fundamentally undervalued relative to its growth, but lacks immediate price momentum.

Strengths
Exceptional balance sheet with very low leverage (Debt/Equity 0.12)
Strong profitability with 79.55% gross margins and 18.90% profit margins
Consistent earnings track record with beats in 3 of the last 4 quarters and a long-term history of surprises
Risks
Strongly bearish insider activity with $8.29M in sales from top executives (CEO, CFO, GC)
Severe negative technical momentum (Technical Trend 0/100)
Recent Q/Q EPS growth decline of -9.2%

Compare Another Pair

MH vs PRDO: Head-to-Head Comparison

This page compares McGraw Hill, Inc. (MH) and Perdoceo Education Corporation (PRDO) 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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