Legacy Education Inc. (LGCY) vs Skillsoft Corp. (SKIL)

Legacy Education Inc. and Skillsoft Corp. are both Education & Training Services companies. Legacy Education Inc. is the larger, with a market value of $112.9M against $33.0M — 3.4× the size. Skillsoft Corp. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 12.1×. Legacy Education Inc. grew revenue faster over the last twelve months: 24.8% against −13.7%. Legacy Education Inc. has the higher net margin (11.4% vs −36.1%) and the higher return on invested capital (24.4% vs −12.4%). Across the 18 metrics below, Legacy Education Inc. leads on 11 and Skillsoft Corp. on 7.

Valuation

Metric LGCY SKIL Education & Training Services median
P/E 12.12 n/m 12.09
P/S 1.39 0.07 0.80
P/B 2.11 n/m 1.39
Price to free cash flow 41.59 4.13 7.31
EV/EBITDA 7.15 4.62 6.36
EV/Sales 1.11 1.13 0.58
Earnings yield 8.25% (510.47%) 3.29%
Free cash flow yield 2.40% 24.19% 3.03%

Profitability

Metric LGCY SKIL Education & Training Services median
Gross margin 46.39% 82.20% 55.03%
Operating margin 14.75% (17.03%) 0.00%
Net margin 11.42% (36.13%) 1.77%
Free cash flow margin 3.35% 1.74% 0.00%
Return on equity 19.49% 643.18% 0.00%
Return on assets 12.37% (18.83%) 0.00%
Return on invested capital 24.41% (12.44%) 0.00%

Growth

Metric LGCY SKIL Education & Training Services median
Revenue growth (TTM) 24.76% (13.66%) 5.84%
EPS growth (last fiscal year) 11.86% (9.41%) 14.71%
Revenue growth, 5-year CAGR — 2.45% 4.24%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric LGCY SKIL Education & Training Services median
Debt to equity 0.00 (6.15) 0.05
Current ratio 3.70 0.87 1.37
Net debt to EBITDA (1.81) 6.62 (0.04)

Dividend

Metric LGCY SKIL Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric LGCY SKIL Education & Training Services median
Market cap 112.91m 32.95m 59.54m

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