Comparing Graham (NYSE:GHC) and TravelSky Technology (OTCMKTS:TSYHY)

Graham (NYSE:GHC) and TravelSky Technology (OTCMKTS:TSYHY) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Earnings and Valuation

This table compares Graham and TravelSky Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graham	$4.91 billion	1.01	$292.29 million	$124.08	9.44
TravelSky Technology	$1.22 billion	2.45	$325.71 million	N/A	N/A

TravelSky Technology has lower revenue, but higher earnings than Graham.

Insider and Institutional Ownership

93.2% of Graham shares are held by institutional investors. 18.6% of Graham shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Graham pays an annual dividend of $7.52 per share and has a dividend yield of 0.6%. TravelSky Technology pays an annual dividend of $0.35 per share and has a dividend yield of 3.4%. Graham pays out 6.1% of its earnings in the form of a dividend. Graham has raised its dividend for 10 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Graham and TravelSky Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graham	0	0	1	1	3.50
TravelSky Technology	0	0	0	0	0.00

Risk and Volatility

Graham has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, TravelSky Technology has a beta of -0.16, indicating that its share price is 116% less volatile than the S&P 500.

Profitability

This table compares Graham and TravelSky Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graham	10.69%	5.73%	3.32%
TravelSky Technology	N/A	N/A	N/A

Summary

Graham beats TravelSky Technology on 11 of the 15 factors compared between the two stocks.

About Graham

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company in the United States and internationally. It provides test preparation services and materials; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global; operations support services for online courses and programs; training and test preparation services for accounting and financial services professionals; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates colleges, business school, higher education institution, and an online learning institution. The company also owns and operates television stations, restaurants, and entertainment venues; engages in the financial training and automobile dealerships business; offers social media management tools to connect newsrooms with their users; produces Foreign Policy magazine and ForeignPolicy.com website; and publishes Slate, an online magazine, as well as French-language news magazine websites at slate.fr and slateafrique.com. In addition, it provides social media marketing solutions; home health, hospice, and palliative services; burners, igniters, dampers, and controls; screw jacks, linear actuators, and related linear motion products, and lifting systems; pressure impregnated kiln-dried lumber and plywood products; digital advertising services; power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies; dermatology and professional aesthetics, and skin care services; software and services; and operates pharmacy. 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.

About TravelSky Technology

TravelSky Technology Limited, together with its subsidiaries, provides information technology solutions for aviation and travel industries in the People’s Republic of China. It primarily offers aviation information technology (AIT), distribution information technology, accounting, settlement, and clearing services. The company’s AIT services include electronic travel distribution services, including inventory control system, computer reservation system, and airport passenger processing system services, as well as other related information technology solutions. It also provides cargo management services, as well as sells and installs related information systems; computer hardware and software development, and data network services; and computer system engineering design and installation and payment services. In addition, the company engages in technology development; sales of computers and auxiliary equipment; contracting of computer software and hardware engineering projects; technical consultation and service; system integration; real estate development and sales; self-developed commercial housing contracting; labor service subcontracting; freight management services; and trade financing services. TravelSky Technology Limited was founded in 1979 and is based in Wanchai, Hong Kong.