Graham Holdings Company (GHC) vs Stride, Inc. (LRN)

Graham Holdings Company and Stride, Inc. are both Education & Training Services companies. Graham Holdings Company is the larger, with a market value of $4.9B against $3.3B — 1.5× the size. Graham Holdings Company trades at the lower P/E: 9.2× against 9.9×. Graham Holdings Company grew revenue faster over the last twelve months: 4.83% against 4.69%. Stride, Inc. has the higher net margin (13.4% vs 10.7%) and the higher return on invested capital (24.5% vs 3.64%). Across the 22 metrics below, Stride, Inc. leads on 13 and Graham Holdings Company on 9.

Valuation

Metric GHC LRN Education & Training Services median
P/E 9.21 9.92 11.19
P/S 0.97 1.33 0.92
P/B 1.03 2.06 1.63
Price to free cash flow 19.86 9.45 9.62
EV/EBITDA 9.98 5.05 7.02
EV/Sales 0.89 1.16 0.82
Earnings yield 10.85% 10.08% 3.17%
Free cash flow yield 5.03% 10.58% 2.30%

Profitability

Metric GHC LRN Education & Training Services median
Gross margin 29.95% 37.75% 54.64%
Operating margin 5.05% 17.90% 0.00%
Net margin 10.69% 13.43% 3.29%
Free cash flow margin 4.89% 14.10% 0.00%
Return on equity 11.80% 21.74% 0.00%
Return on assets 6.88% 14.30% 0.00%
Return on invested capital 3.64% 24.52% 0.00%

Growth

Metric GHC LRN Education & Training Services median
Revenue growth (TTM) 4.83% 4.69% 6.97%
EPS growth (last fiscal year) (59.32%) 20.00% —
Revenue growth, 5-year CAGR 11.20% 10.38% 4.27%
Net income growth, 5-year CAGR (0.54%) 36.47% 0.00%

Health

Metric GHC LRN Education & Training Services median
Debt to equity 0.19 0.29 0.08
Current ratio 1.86 5.94 1.33
Net debt to EBITDA (1.24) (0.84) (0.15)

Dividend

Metric GHC LRN Education & Training Services median
Dividend yield 0.94% — 1.13%
Payout ratio 0.14 0.00 0.00

Size

Metric GHC LRN Education & Training Services median
Market cap 4.85b 3.33b 68.93m

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