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 $2.6B against $1.3B — 2.0× the size. Coursera, Inc. has negative trailing earnings, so its P/E is not meaningful; McGraw Hill, Inc. trades at 25.5×. 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 25.46 11.19
P/S 1.33 1.15 0.92
P/B 1.01 3.09 1.63
Price to free cash flow 111.20 11.86 9.62
EV/EBITDA n/m 6.23 7.02
EV/Sales 0.22 2.27 0.82
Earnings yield (13.27%) 3.93% 3.17%
Free cash flow yield 0.90% 8.43% 2.30%

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% 3.29%
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% —
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 0.08
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 — — 1.13%
Payout ratio 0.00 — 0.00

Size

Metric COUR MH Education & Training Services median
Market cap 1.34b 2.62b 68.93m

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