Contrasting McGraw Hill (MH) and Its Competitors

by · The Markets Daily

McGraw Hill (NYSE:MHGet Free Report) is one of 167 public companies in the “Diversified Consumer Services” industry, but how does it weigh in compared to its peers? We will compare McGraw Hill to related businesses based on the strength of its earnings, analyst recommendations, valuation, profitability, dividends, institutional ownership and risk.

Analyst Recommendations

This is a summary of recent ratings for McGraw Hill and its peers, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
McGraw Hill12812.75
McGraw Hill Competitors1387336552081862.41

McGraw Hill currently has a consensus price target of $17.20, suggesting a potential upside of 35.38%. As a group, “Diversified Consumer Services” companies have a potential upside of 59.60%. Given McGraw Hill’s peers higher probable upside, analysts clearly believe McGraw Hill has less favorable growth aspects than its peers.

Profitability

This table compares McGraw Hill and its peers’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
McGraw Hill4.38%62.57%8.56%
McGraw Hill Competitors-2.67%-18.15%3.06%

Valuation & Earnings

This table compares McGraw Hill and its peers revenue, earnings per share and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
McGraw Hill$2.10 billion$35.32 million25.41
McGraw Hill Competitors$3.23 billion$219.72 million12.51

McGraw Hill’s peers have higher revenue and earnings than McGraw Hill. McGraw Hill is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

47.8% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 1.2% of McGraw Hill shares are held by company insiders. Comparatively, 19.9% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

McGraw Hill has a beta of -0.85, indicating that its share price is 185% less volatile than the S&P 500. Comparatively, McGraw Hill’s peers have a beta of 0.47, indicating that their average share price is 53% less volatile than the S&P 500.

Summary

McGraw Hill beats its peers on 7 of the 13 factors compared.

McGraw Hill Company Profile

(Get Free Report)

At McGraw Hill, our purpose is to unlock the potential of each learner at every stage of life. Our mission is to support educators, learners and professionals around the world with trusted, high-quality content and digital solutions that use data and learning science to adapt to each student as they progress towards their goals. McGraw Hill is a leading global provider of information solutions for education across K-12 to higher education, and through professional learning. We harness the power of content, data-driven insights, and learning science to deliver personalized learning experiences and drive positive outcomes throughout the entire learning lifecycle. We believe that we have positively impacted hundreds of millions of learners and educators with our personalized learning solutions to support learning at scale worldwide. On an annual basis, we serve approximately 60 million learners and educators. We believe McGraw Hill is one of the most trusted and recognized education brands in the world. Based on the results of a third-party survey that we commissioned in the fiscal year ended March 31, 2025, we believe that, in the United States, on average, 89% of K-12, higher education and medical school students, faculty and administrators would consider McGraw Hill for their classes. Understanding how learning happens is critical to building effective learning solutions, like ALEKS, which has leveraged data science and machine learning to enhance learning outcomes for over 25 years. Over the last decade, we have invested more than $2.0 billion in developing a suite of market leading digital learning solutions. We utilize our data analytics capabilities to generate continuous feedback loops that drive product and go-to-market innovation, which allows us to simplify workflows while creating meaningful learning experiences that are tailored to the needs of each learner. At McGraw Hill, we recognize that the integrity of educational content is of utmost importance, especially as generative AI becomes more integrated into the learning process. With the proliferation of AI-generated generic content, the risks of inaccurate and low-quality information are heightened, which is why our proprietary content is rigorously researched and designed to meet the highest quality standards. We aim to offer vetted content and data-driven learning solutions that educators and learners can trust. With approximately 1,500 sales professionals worldwide as of March 31, 2025, we believe our global sales force is one of the largest in the education sector, underpinning our ability to serve learners, educators and professionals at scale across the learning lifecycle. Our principal offices are located in Columbus, Ohio.