Laureate Education (LAUR) vs McGraw Hill, Inc. (MH)

Laureate Education and McGraw Hill, Inc. are both Education & Training Services companies. Laureate Education is the larger, with a market value of $4.5B against $2.2B — 2.1× the size. Laureate Education trades at the lower P/E: 12.1× against 29.6×. Laureate Education grew revenue faster over the last twelve months: 20.9% against −0.70%. Laureate Education has the higher net margin (20.3% vs 3.55%) and the higher return on invested capital (26.5% vs 5.51%). Across the 20 metrics below, Laureate Education leads on 13 and McGraw Hill, Inc. on 7.

Valuation

Metric LAUR MH Education & Training Services median
P/E 12.09 29.58 12.09
P/S 2.38 1.03 0.80
P/B 3.93 2.45 1.39
Price to free cash flow 15.71 25.83 7.31
EV/EBITDA 7.36 5.75 6.36
EV/Sales 2.38 2.14 0.58
Earnings yield 8.27% 3.38% 3.29%
Free cash flow yield 6.37% 3.87% 3.03%

Profitability

Metric LAUR MH Education & Training Services median
Gross margin 28.56% 81.68% 55.03%
Operating margin 25.82% 13.43% 0.00%
Net margin 20.28% 3.55% 1.77%
Free cash flow margin 15.15% 4.00% 0.00%
Return on equity 34.09% 8.83% 0.00%
Return on assets 16.90% 1.26% 0.00%
Return on invested capital 26.46% 5.51% 0.00%

Growth

Metric LAUR MH Education & Training Services median
Revenue growth (TTM) 20.90% (0.70%) 5.84%
EPS growth (last fiscal year) (1.56%) 136.88% 14.71%
Revenue growth, 5-year CAGR 10.68% — 4.24%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric LAUR MH Education & Training Services median
Debt to equity 0.17 2.88 0.05
Current ratio 0.71 0.86 1.37
Net debt to EBITDA (0.04) 3.07 (0.04)

Dividend

Metric LAUR MH Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric LAUR MH Education & Training Services median
Market cap 4.52b 2.15b 59.54m

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