McGraw Hill, Inc. (MH)vsPepsiCo Inc (PEP)
MH
McGraw Hill, Inc.
$12.32
+1.73%
CONSUMER DEFENSIVE · Cap: $2.35B
PEP
PepsiCo Inc
$136.32
-0.24%
CONSUMER DEFENSIVE · Cap: $186.21B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 4477% more annual revenue ($96.90B vs $2.12B). PEP leads profitability with a 10.8% profit margin vs 4.4%. PEP trades at a lower P/E of 17.9x. PEP earns a higher WallStSmart Score of 71/100 (B).
MH
Buy57
out of 100
Grade: C
PEP
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MH.
Margin of Safety
+2.6%
Fair Value
$139.91
Current Price
$136.32
$3.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 9860.0% YoY
Reasonable price relative to book value
Strong operational efficiency at 21.5%
Every $100 of equity generates 47 in profit
Earnings expanding 137.0% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.5B in free cash flow
Areas to Watch
Moderate valuation
2.6% revenue growth
4.4% margin — thin
ROE of -9.2% — below average capital efficiency
Trading at 8.4x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MH
The strongest argument for MH centers on EPS Growth, Price/Book, Operating Margin.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.40 suggests the stock is reasonably priced for its growth.
Bear Case : MH
The primary concerns for MH are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.37 is elevated, increasing financial risk. Thin 4.4% margins leave little buffer for downturns.
Bear Case : PEP
The primary concerns for PEP are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.41 is elevated, increasing financial risk.
Key Dynamics to Monitor
PEP is growing revenue faster at 6.4% — sustainability is the question.
PEP generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (71/100 vs 57/100). 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.
McGraw Hill, Inc.
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA
McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.
PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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