Afya Limited (AFYA) vs Strategic Education Inc. (STRA)

Afya Limited and Strategic Education Inc. are both Education & Training Services companies. Strategic Education Inc. is the larger, with a market value of $1.3B against $928.2M — 1.4× the size. Afya Limited trades at the lower P/E: 6.2× against 200×. Afya Limited grew revenue faster over the last twelve months: 17.4% against 2.79%. Afya Limited has the higher net margin (20.6% vs 0.74%) and the higher return on invested capital (12.5% vs 2.52%). Both pay a dividend; Afya Limited yields more (6.47% vs 4.15%). Across the 23 metrics below, Afya Limited leads on 17 and Strategic Education Inc. on 6.

Valuation

Metric AFYA STRA Education & Training Services median
P/E 6.15 199.59 12.09
P/S 1.24 0.94 0.80
P/B 0.92 0.81 1.39
Price to free cash flow 3.72 7.26 7.31
EV/EBITDA 3.61 5.06 6.36
EV/Sales 1.53 0.89 0.58
Earnings yield 16.26% 0.50% 3.29%
Free cash flow yield 26.87% 13.77% 3.03%

Profitability

Metric AFYA STRA Education & Training Services median
Gross margin 64.09% 49.19% 55.03%
Operating margin 32.70% 4.31% 0.00%
Net margin 20.58% 0.74% 1.77%
Free cash flow margin 33.43% 16.47% 0.00%
Return on equity 16.63% 0.60% 0.00%
Return on assets 8.58% 0.47% 0.00%
Return on invested capital 12.54% 2.52% 0.00%

Growth

Metric AFYA STRA Education & Training Services median
Revenue growth (TTM) 17.43% 2.79% 5.84%
EPS growth (last fiscal year) 15.50% 15.85% 14.71%
Revenue growth, 5-year CAGR 23.23% 4.30% 4.24%
Net income growth, 5-year CAGR 18.92% 7.98% 0.00%

Health

Metric AFYA STRA Education & Training Services median
Debt to equity 0.42 0.00 0.05
Current ratio 2.20 1.08 1.37
Net debt to EBITDA 0.59 (0.66) (0.04)

Dividend

Metric AFYA STRA Education & Training Services median
Dividend yield 6.47% 4.15% 2.64%
Payout ratio 0.40 14.12 0.26

Size

Metric AFYA STRA Education & Training Services median
Market cap 928.24m 1.30b 59.54m

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