WallStSmart

Graham Holdings Co (GHC)vsGrand Canyon Education Inc (LOPE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Graham Holdings Co generates 343% more annual revenue ($4.98B vs $1.13B). LOPE leads profitability with a 19.5% profit margin vs 6.0%. LOPE appears more attractively valued with a PEG of 0.97. LOPE earns a higher WallStSmart Score of 71/100 (B).

GHC

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 3.04

LOPE

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 9.5Value: 5.3Quality: 8.5
Piotroski: 4/9Altman Z: 8.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GHCSignificantly Overvalued (-32.0%)

Margin of Safety

-32.0%

Fair Value

$840.48

Current Price

$1132.53

$292.05 premium

UndervaluedFair: $840.48Overvalued
LOPESignificantly Overvalued (-55.2%)

Margin of Safety

-55.2%

Fair Value

$103.25

Current Price

$152.57

$49.32 premium

UndervaluedFair: $103.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHC5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.0410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

LOPE5 strengths · Avg: 9.4/10
Return on EquityProfitability
31.6%10/10

Every $100 of equity generates 32 in profit

Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Altman Z-ScoreHealth
8.0910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Areas to Watch

GHC3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

Profit MarginProfitability
6.0%3/10

6.0% margin — thin

PEG RatioValuation
4.042/10

Expensive relative to growth rate

LOPE0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : GHC

The strongest argument for GHC centers on Price/Book, Altman Z-Score, Debt/Equity.

Bull Case : LOPE

The strongest argument for LOPE centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.5% and operating margin at 30.9%. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bear Case : GHC

The primary concerns for GHC are Return on Equity, Profit Margin, PEG Ratio.

Bear Case : LOPE

No major red flags identified for LOPE, but monitor valuation.

Key Dynamics to Monitor

GHC profiles as a value stock while LOPE is a mature play — different risk/reward profiles.

GHC carries more volatility with a beta of 0.72 — expect wider price swings.

LOPE is growing revenue faster at 6.7% — sustainability is the question.

LOPE generates stronger free cash flow (80M), providing more financial flexibility.

Bottom Line

LOPE scores higher overall (71/100 vs 56/100), backed by strong 19.5% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Graham Holdings Co

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Graham Holdings Company is a diversified global media and education company. The company is headquartered in Arlington, Virginia.

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Grand Canyon Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Grand Canyon Education, Inc. provides educational services to colleges and universities in the United States. The company is headquartered in Phoenix, Arizona.

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