Graham (NYSE:GHC) and Scientific Learning (OTCMKTS:SCIL) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Volatility and Risk
Graham has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Scientific Learning has a beta of -0.29, meaning that its share price is 129% less volatile than the S&P 500.
This table compares Graham and Scientific Learning’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
69.7% of Graham shares are owned by institutional investors. 21.3% of Graham shares are owned by insiders. Comparatively, 16.1% of Scientific Learning shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Graham and Scientific Learning’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Graham||$2.70 billion||1.40||$271.21 million||N/A||N/A|
|Scientific Learning||$16.74 million||0.46||-$870,000.00||N/A||N/A|
Graham has higher revenue and earnings than Scientific Learning.
This is a summary of recent ratings and price targets for Graham and Scientific Learning, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Graham pays an annual dividend of $5.56 per share and has a dividend yield of 0.8%. Scientific Learning does not pay a dividend. Graham has increased its dividend for 2 consecutive years.
Graham beats Scientific Learning on 11 of the 11 factors compared between the two stocks.
Graham Company Profile
Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides test preparation services and materials, as well as data science education, and training and healthcare simulation services; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to Purdue University Global. The company also offers training, test preparation, and degrees for accounting and financial services professionals; professional training courses; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates three colleges, one business school, one higher education institution, and one online learning institution. In addition, it owns and operates seven television stations; and provides social-media management tools designed to connect newsrooms with their users, as well as produces Foreign Policy magazine and ForeignPolicy.com Website. Further, the company publishes Slate, an online magazine and Website; and two French-language news magazine Websites at slate.fr and slateafrique.com. Additionally, it provides marketing solutions on social, mobile, and video platforms; home health and hospice services; burners, igniters, dampers, and controls; screw jacks, linear actuators and related linear motion products, and lifting systems; and pressure impregnated kiln-dried lumber and plywood products, as well as develops cybersecurity training and workforce development education programs. The company also offers power charging and data systems; industrial and commercial indoor lighting solutions; and electrical components and assemblies. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.
Scientific Learning Company Profile
Scientific Learning Corporation, an education company, develops, distributes, and licenses technology that accelerates learning by enhancing the processing efficiency of the brain. Its flagship Fast ForWord, a Web-based product, comprises Fast ForWord Language for elementary learners and Fast ForWord Literacy for adolescent learners that build foundational reading and language skills to help districts move below grade level learners to learn in the general classroom, and Fast ForWord Reading, which builds learning capacity through developing cognitive skills using exercises focusing on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension. The company also provides Reading Assistant that offers a one-on-one reading tutor for learners; ResultsNow!, an online hosting and support solution for its Fast ForWord and Reading Assistant products; and BrainPro services targeted at learners who are below grade level. In addition, it offers on-site product training, technical installation, implementation management, consulting, and Web-based synchronous and asynchronous professional development services; and software technical update releases, as well as extensive telephone, email, and chat support services. The company offers learning solutions primarily to educational institutions, speech and language clinics, learning centers, and parents. Scientific Learning Corporation was founded in 1995 and is headquartered in Oakland, California.
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