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 $132.6M against $53.3M — 2.5× the size. Skillsoft Corp. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 14.0×. Legacy Education Inc. grew revenue faster over the last twelve months: 24.8% against 7.17%. Legacy Education Inc. has the higher net margin (11.4% vs −32.4%) and the higher return on invested capital (24.4% 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 14.04 n/m 13.22
P/S 1.61 0.10 0.99
P/B 2.45 n/m 1.62
Price to free cash flow 48.17 6.58 10.06
EV/EBITDA 8.56 4.80 8.56
EV/Sales 1.33 1.05 0.78
Earnings yield 7.12% (320.59%) 3.17%
Free cash flow yield 2.08% 15.19% 2.81%

Profitability

Metric LGCY SKIL Education & Training Services median
Gross margin 46.39% 73.62% 54.64%
Operating margin 14.75% (15.25%) 0.00%
Net margin 11.42% (32.36%) 2.98%
Free cash flow margin 3.35% 1.56% 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% 7.17% 6.97%
EPS growth (last fiscal year) 11.86% (9.41%) 15.68%
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 0.00 (6.15) 0.05
Current ratio 3.70 0.87 1.33
Net debt to EBITDA (1.81) 6.62 (0.15)

Dividend

Metric LGCY SKIL Education & Training Services median
Dividend yield — — 1.84%
Payout ratio — — 0.23

Size

Metric LGCY SKIL Education & Training Services median
Market cap 132.62m 53.33m 68.84m

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