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 $120.8M against $55.7M — 2.2× the size. Skillsoft Corp. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 13.9×. Legacy Education Inc. grew revenue faster over the last twelve months: 32.1% against 7.17%. Legacy Education Inc. has the higher net margin (10.9% vs −32.4%) and the higher return on invested capital (24.5% vs −12.4%). Across the 18 metrics below, Legacy Education Inc. leads on 10 and Skillsoft Corp. on 8.

Valuation

Metric LGCY SKIL Education & Training Services median
P/E 13.90 n/m 11.19
P/S 1.53 0.11 0.92
P/B 2.41 n/m 1.63
Price to free cash flow 25.11 6.78 9.62
EV/EBITDA 8.35 4.81 7.02
EV/Sales 1.26 1.06 0.82
Earnings yield 7.20% (311.43%) 3.17%
Free cash flow yield 3.98% 14.76% 2.30%

Profitability

Metric LGCY SKIL Education & Training Services median
Gross margin 47.24% 73.62% 54.64%
Operating margin 14.36% (15.25%) 0.00%
Net margin 10.89% (32.36%) 3.29%
Free cash flow margin 6.10% 1.56% 0.00%
Return on equity 19.11% 643.18% 0.00%
Return on assets 11.91% (18.83%) 0.00%
Return on invested capital 24.48% (12.44%) 0.00%

Growth

Metric LGCY SKIL Education & Training Services median
Revenue growth (TTM) 32.10% 7.17% 6.97%
EPS growth (last fiscal year) 11.32% (9.41%) —
Revenue growth, 5-year CAGR — 2.45% 4.27%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric LGCY SKIL Education & Training Services median
Debt to equity 0.01 (6.15) 0.08
Current ratio 3.36 0.87 1.33
Net debt to EBITDA (1.80) 6.62 (0.15)

Dividend

Metric LGCY SKIL Education & Training Services median
Dividend yield — — 1.13%
Payout ratio — 0.00 0.00

Size

Metric LGCY SKIL Education & Training Services median
Market cap 120.81m 55.69m 68.93m

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