Comparing Weight Watchers International (WTW) and Graham Holdings (GHC)
Weight Watchers International (NYSE: WTW) and Graham Holdings (NYSE:GHC) are both mid-cap personal services – nec companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
88.1% of Weight Watchers International shares are owned by institutional investors. Comparatively, 69.1% of Graham Holdings shares are owned by institutional investors. 15.8% of Weight Watchers International shares are owned by insiders. Comparatively, 22.5% of Graham Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Weight Watchers International has a beta of 2.99, suggesting that its stock price is 199% more volatile than the S&P 500. Comparatively, Graham Holdings has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Weight Watchers International and Graham Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weight Watchers International||1||1||1||0||2.00|
Weight Watchers International currently has a consensus price target of $38.67, suggesting a potential downside of 12.87%. Given Weight Watchers International’s higher probable upside, equities research analysts plainly believe Weight Watchers International is more favorable than Graham Holdings.
Graham Holdings pays an annual dividend of $5.08 per share and has a dividend yield of 0.9%. Weight Watchers International does not pay a dividend. Graham Holdings pays out 22.9% of its earnings in the form of a dividend.
This table compares Weight Watchers International and Graham Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weight Watchers International||9.03%||-8.81%||7.94%|
Earnings and Valuation
This table compares Weight Watchers International and Graham Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Weight Watchers International||$1.16 billion||2.46||$67.69 million||$1.68||26.42|
|Graham Holdings||$2.48 billion||1.27||$168.59 million||$22.20||25.69|
Graham Holdings has higher revenue and earnings than Weight Watchers International. Graham Holdings is trading at a lower price-to-earnings ratio than Weight Watchers International, indicating that it is currently the more affordable of the two stocks.
Weight Watchers International beats Graham Holdings on 9 of the 15 factors compared between the two stocks.
About Weight Watchers International
Weight Watchers International, Inc. is a provider of weight management services. The Company operates globally through a network of Company-owned and franchise operations. The Company’s branded products and services include meetings conducted by its franchisees, digital weight management products provided through its Websites, mobile sites and applications, products sold at meetings, licensed products sold in retail channels and magazine subscriptions and other publications. It operates through four segments: North America, United Kingdom, Continental Europe (CE) and Other. It sells a range of products, including bars, snacks, cookbooks, food and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators and fitness kits, and certain third-party products, such as activity-tracking monitors. It sells its products through its meetings business, online and to its franchisees. It includes a range of nutritional, activity, behavioral and lifestyle tools.
About Graham Holdings
Graham Holdings Company, formerly The Washington Post Company, is a diversified education and media company whose principal operations include educational services, television broadcasting, cable television systems, and online, print and local TV news. The Company owns Kaplan, a provider of educational services to individuals, schools and businesses, serving over one million students annually with operations in more than 30 countries. Its programs include higher education, test preparation, language instruction and professional training. Its Post-Newsweek Stations, Inc owns six television stations which include WDIV-Detroit (NBC), KPRC-Houston (NBC),WPLG-Miami (ABC), WKMG-Orlando (CBS), KSAT-San Antonio (ABC) and WJXT-Jacksonville (independent). The stations also broadcast digital channels focusing on classic television and lifestyle programming, in addition to operating mobile sites and mobile applications delivering breaking news, weather and community news.
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