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SBGI vs SCHL

SBGI
Sinclair, Inc.
BEARISH
Price
$16.79
Market Cap
$1.2B
Sector
Communication Services
AI Confidence
85%
SCHL
Scholastic Corporation
NEUTRAL
Price
$39.77
Market Cap
$1.01B
Sector
Communication Services
AI Confidence
80%

Valuation

P/E Ratio
SBGI
--
SCHL
16.5
Forward P/E
SBGI
-10.48
SCHL
14.2
P/B Ratio
SBGI
2.64
SCHL
0.99
P/S Ratio
SBGI
0.38
SCHL
0.63
EV/EBITDA
SBGI
11.15
SCHL
13.0

Profitability

Gross Margin
SBGI
43.99%
SCHL
56.22%
Operating Margin
SBGI
12.68%
SCHL
-8.27%
Profit Margin
SBGI
-3.53%
SCHL
3.89%
ROE
SBGI
-22.35%
SCHL
6.92%
ROA
SBGI
1.9%
SCHL
1.33%

Growth

Revenue Growth
SBGI
-16.7%
SCHL
-1.9%
Earnings Growth
SBGI
-40.8%
SCHL
--

Financial Health

Debt/Equity
SBGI
12.21
SCHL
0.36
Current Ratio
SBGI
2.42
SCHL
1.18
Quick Ratio
SBGI
2.21
SCHL
0.64

Dividends

Dividend Yield
SBGI
5.96%
SCHL
2.01%
Payout Ratio
SBGI
113.64%
SCHL
33.2%

AI Verdict

SBGI BEARISH

SBGI exhibits severe fundamental weakness, anchored by a Piotroski F-Score of 2/9, which signals poor financial health. Despite a recent short-term price rally, the company is burdened by an extreme Debt/Equity ratio of 12.21 and negative growth across both revenue (-16.70%) and earnings (-40.80%). The dividend is currently unsustainable with a payout ratio of 113.64%, and insider sentiment is decidedly bearish. The disconnect between the rising stock price and deteriorating fundamentals suggests a speculative bubble or a temporary market anomaly rather than value creation.

Strengths
Strong short-term liquidity (Current Ratio 2.42, Quick Ratio 2.21)
Healthy Gross Margin of 43.99%
Low Price-to-Sales ratio (0.38) suggesting potential undervaluation of top-line revenue
Risks
Extreme leverage with a Debt/Equity ratio of 12.21, posing significant solvency risk
Negative growth trajectory in both Revenue (-16.70% YoY) and Earnings (-40.80% YoY)
Unsustainable dividend payout ratio of 113.64%, indicating dividends are paid from capital or debt
SCHL NEUTRAL

SCHL presents a conflict between strong value metrics and deteriorating operational fundamentals. While the Piotroski F-Score of 4/9 indicates stable but mediocre health and the current price sits below the Graham Number ($46.63), the stock's 151% one-year rally is disconnected from its negative revenue growth (-1.90%) and negative operating margin (-8.27%). The significant gap between the Intrinsic Value ($16.87) and current price suggests the market is pricing in a recovery that is not yet evident in the data. Overall, the company is a value play with significant operational headwinds and bearish insider sentiment.

Strengths
Trading slightly below book value (P/B 0.99)
Low Debt/Equity ratio (0.36) indicating a conservative capital structure
Low P/E (16.50) relative to the Communication Services sector average (55.98)
Risks
Negative operating margin (-8.27%) suggests core business inefficiency
Negative YoY and Q/Q revenue growth indicating a shrinking top line
Low Quick Ratio (0.64) suggests potential liquidity pressure if inventory cannot be liquidated

Compare Another Pair

SBGI vs SCHL: Head-to-Head Comparison

This page compares Sinclair, Inc. (SBGI) and Scholastic Corporation (SCHL) 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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