McGraw Hill, Inc. (MH)vsPepsiCo Inc (PEP)
MH
McGraw Hill, Inc.
$12.21
+1.58%
CONSUMER DEFENSIVE · Cap: $2.25B
PEP
PepsiCo Inc
$141.92
+0.38%
CONSUMER DEFENSIVE · Cap: $194.11B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 4439% more annual revenue ($95.45B vs $2.10B). PEP leads profitability with a 9.2% profit margin vs 1.7%. PEP trades at a lower P/E of 22.3x. PEP earns a higher WallStSmart Score of 62/100 (C+).
MH
Hold37
out of 100
Grade: F
PEP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MH.
Margin of Safety
-2.5%
Fair Value
$138.40
Current Price
$141.92
$3.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 27.8% YoY
Areas to Watch
0.0% earnings growth
1.7% margin — thin
Premium valuation, high expectations priced in
ROE of -9.2% — below average capital efficiency
Expensive relative to growth rate
Trading at 9.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : MH
MH has a balanced fundamental profile.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, EPS Growth.
Bear Case : MH
The primary concerns for MH are EPS Growth, Profit Margin, P/E Ratio. A P/E of 61.9x leaves little room for execution misses. Debt-to-equity of 3.47 is elevated, increasing financial risk.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
PEP is growing revenue faster at 8.5% — sustainability is the question.
MH generates stronger free cash flow (308M), providing more financial flexibility.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (62/100 vs 37/100). Both earn "Buy" and "Hold" 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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