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 $5.4B against $2.7B — 2.0× the size. Laureate Education trades at the lower P/E: 17.2× against 27.7×. Laureate Education grew revenue faster over the last twelve months: 17.9% against 0.14%. Laureate Education has the higher net margin (17.6% vs 4.38%) and the higher return on invested capital (23.4% vs 5.81%). Across the 20 metrics below, Laureate Education leads on 11 and McGraw Hill, Inc. on 9.

Valuation

Metric LAUR MH Education & Training Services median
P/E 17.24 27.68 13.22
P/S 2.94 1.25 0.99
P/B 4.71 3.36 1.62
Price to free cash flow 18.74 12.89 10.06
EV/EBITDA 9.53 6.51 8.56
EV/Sales 2.97 2.37 0.78
Earnings yield 5.80% 3.61% 3.17%
Free cash flow yield 5.34% 7.76% 2.81%

Profitability

Metric LAUR MH Education & Training Services median
Gross margin 27.26% 81.65% 54.64%
Operating margin 24.42% 13.93% 0.00%
Net margin 17.57% 4.38% 2.98%
Free cash flow margin 15.67% 9.70% 0.00%
Return on equity 29.34% 17.30% 0.00%
Return on assets 14.42% 1.68% 0.00%
Return on invested capital 23.36% 5.81% 0.00%

Growth

Metric LAUR MH Education & Training Services median
Revenue growth (TTM) 17.89% 0.14% 6.97%
EPS growth (last fiscal year) (1.56%) 136.88% 15.68%
Revenue growth, 5-year CAGR 10.68% — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric LAUR MH Education & Training Services median
Debt to equity 0.19 3.27 0.05
Current ratio 0.71 0.78 1.33
Net debt to EBITDA (0.04) 3.07 (0.15)

Dividend

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

Size

Metric LAUR MH Education & Training Services median
Market cap 5.38b 2.72b 68.84m

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