Coursera, Inc. (COUR) vs McGraw Hill, Inc. (MH)

Coursera, Inc. and McGraw Hill, Inc. are both Education & Training Services companies. McGraw Hill, Inc. is the larger, with a market value of $2.7B against $1.4B — 2.0× the size. Coursera, Inc. has negative trailing earnings, so its P/E is not meaningful; McGraw Hill, Inc. trades at 27.7×. Coursera, Inc. grew revenue faster over the last twelve months: 22.7% against 0.14%. McGraw Hill, Inc. has the higher net margin (4.38% vs −15.4%) and the higher return on invested capital (5.81% vs −53.4%). Across the 18 metrics below, McGraw Hill, Inc. leads on 13 and Coursera, Inc. on 5.

Valuation

Metric COUR MH Education & Training Services median
P/E n/m 27.68 13.22
P/S 1.30 1.25 0.99
P/B 0.99 3.36 1.62
Price to free cash flow 108.77 12.89 10.06
EV/EBITDA n/m 6.51 8.56
EV/Sales 0.19 2.37 0.78
Earnings yield (13.56%) 3.61% 3.17%
Free cash flow yield 0.92% 7.76% 2.81%

Profitability

Metric COUR MH Education & Training Services median
Gross margin 55.88% 81.65% 54.64%
Operating margin (17.83%) 13.93% 0.00%
Net margin (15.39%) 4.38% 2.98%
Free cash flow margin 1.20% 9.70% 0.00%
Return on equity (15.20%) 17.30% 0.00%
Return on assets (9.31%) 1.68% 0.00%
Return on invested capital (53.40%) 5.81% 0.00%

Growth

Metric COUR MH Education & Training Services median
Revenue growth (TTM) 22.68% 0.14% 6.97%
EPS growth (last fiscal year) 39.22% 136.88% 15.68%
Revenue growth, 5-year CAGR 20.88% — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric COUR MH Education & Training Services median
Debt to equity 0.00 3.27 0.05
Current ratio 1.59 0.78 1.33
Net debt to EBITDA 16.31 3.07 (0.15)

Dividend

Metric COUR MH Education & Training Services median
Dividend yield — — 1.84%
Payout ratio — — 0.23

Size

Metric COUR MH Education & Training Services median
Market cap 1.35b 2.72b 68.84m

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