MH vs UTI: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
MH and UTI are similarly sized, but MH trades noticeably cheaper on forward earnings (5.37x vs 42.27x): the market is paying up for UTI's profile and pricing MH more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
MH vs UTI: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | MH | UTI | What it tells you |
|---|---|---|---|
| Market cap | $2.10B | $2.16B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 5.37 | 42.27 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 57.68 | 51.72 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Price vs 52-week range | 22% of range | 60% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.88 | 6.37 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: MH is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how MH and UTI affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MH and UTI share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MH and UTI exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does McGraw Hill (MH) do?
McGraw Hill, Inc. is a global education company that provides curriculum, courseware, assessments, and adaptive-learning platforms across K-12 schools, higher education, and professional and international markets. It has moved well beyond its textbook roots: digital products such as its ALEKS adaptive-learning system and Connect courseware now drive the majority of revenue, and management emphasizes recurring subscription and licensing income over one-time print sales. The company was taken private by Apollo Global Management in 2013, merged plans with Cengage were abandoned, and it returned to the public market with a July 2025 IPO on the NYSE at $17 per share.
What does Universal Technical Institute (UTI) do?
Universal Technical Institute, Inc. (NYSE: UTI) runs postsecondary vocational schools across two reportable segments. The legacy UTI segment trains students in automotive, diesel, motorcycle, marine, welding, CNC and related skilled trades, while the Concorde Career Colleges segment (acquired in 2022) offers allied health, dental, nursing, patient-care and diagnostic programs. The company generates revenue primarily from student tuition, much of it funded through federal Title IV financial aid, and it has been growing student starts and average full-time enrollment at both segments.
MH vs UTI: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- MH drivers: Shift to recurring digital revenue; Higher Education momentum and AI features.
- UTI drivers: Skilled-trades demand tailwind; Concorde and healthcare diversification.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: McGraw Hill still carries meaningful debt from its private-equity ownership, so a large share of operating cash flow goes to interest and principal rather than shareholders, and rising rates or a stumble in growth would pressure the equity. For UTI, uTI depends heavily on federal Title IV student aid, so changes to financial-aid rules, gainful-employment regulations, or the 90/10 revenue rule could materially affect the business.
MH or UTI: which should you pick?
MH vs UTI: the full fundamentals
MH. McGraw Hill trades at a market cap below its annual revenue, reflecting both its debt load, which sits ahead of shareholders, and modest overall top-line growth. The trailing P/E has been elevated near 50 times because net income only recently turned positive, so investors have leaned on EV/EBITDA and free cash flow instead. The stock traded around $9 to $10 in mid-July 2026, well below its $17 July 2025 IPO price, within a 52-week range of roughly $8.95 to $18.
UTI. Fiscal 2025 revenue grew about 14% and net income rose roughly 50% to about $63 million. Fiscal 2026 guidance calls for revenue near $905 to $915 million but net income of only about $40 to $45 million, reflecting roughly $40 million of growth-investment spending. The premium P/E reflects investor expectations that campus expansion will lift future earnings.
Headline figures (approximate, JULY 2026): MH shows revenue (fy2026, ended march 2026) ~$2.10B (+0.1% YoY), recurring revenue ~$1.54B (+5.8%, ~73% of total), adjusted ebitda ~$744M (~35% margin), net income (fy2026) ~$35M (from a prior-year loss); UTI shows revenue (fy2025) ~$835.6M, revenue guidance (fy2026) ~$905-915M, net income (fy2025) ~$63M, adjusted ebitda (fy2025) ~$126.5M.
The bottom line: MH vs UTI
MH and UTI are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MH and UTI exposure against your real portfolio. It is not an investment adviser.
Wondering how MH or UTI fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in McGraw Hill with AI
Connect the broker you already use and ask Walnut's AI how MH fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between MH and UTI?
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McGraw Hill, Inc. Universal Technical Institute, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is MH or UTI the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, MH or UTI?
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On forward P/E (as of August 2026), MH trades at 5.37x and UTI at 42.27x, so MH is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both MH and UTI?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of MH vs UTI?
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MH: McGraw Hill still carries meaningful debt from its private-equity ownership, so a large share of operating cash flow goes to interest and principal rather than shareholders, and rising rates or a stumble in growth would pressure the equity. Overall revenue growth has been roughly flat, with strength in Higher Education offset by softer K-12 and international results that depend on school-district and government budgets. The industry faces structural pressure from free open educational resources, used-book and rental markets, and enrollment declines in parts of US higher education. Competition is intense from Pearson, Cengage, and Houghton Mifflin Harcourt, and increasingly from large technology firms building AI tutors and content. The stock has traded well below its $17 IPO price, and as a recently public, controlled company it carries limited trading history and concentrated ownership. UTI: UTI depends heavily on federal Title IV student aid, so changes to financial-aid rules, gainful-employment regulations, or the 90/10 revenue rule could materially affect the business. Near-term profitability has already collapsed on expansion spending, and the stock's premium multiple leaves little room for disappointment if new campuses underperform or enrollment growth stalls. The for-profit education sector carries a history of regulatory scrutiny and reputational risk. Rising labor and real-estate costs can pressure margins, and an economic downturn can cut both ways on enrollment. Any softening in student starts or graduate placement rates would challenge the growth narrative underpinning the current valuation.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell MH or UTI; figures are approximate and dated (as of August 2026). Verify current data before investing.