Grand Canyon Education, Inc. (LOPE) vs McGraw Hill, Inc. (MH)

Grand Canyon Education, Inc. and McGraw Hill, Inc. are both Education & Training Services companies. Grand Canyon Education, Inc. is the larger, with a market value of $3.2B against $2.2B — 1.5× the size. Grand Canyon Education, Inc. trades at the lower P/E: 13.0× against 29.6×. Grand Canyon Education, Inc. grew revenue faster over the last twelve months: 5.30% against −0.70%. Grand Canyon Education, Inc. has the higher net margin (21.9% vs 3.55%) and the higher return on invested capital (41.0% vs 5.51%). Across the 20 metrics below, Grand Canyon Education, Inc. leads on 14 and McGraw Hill, Inc. on 6.

Valuation

Metric LOPE MH Education & Training Services median
P/E 12.96 29.58 12.09
P/S 2.73 1.03 0.80
P/B 4.90 2.45 1.39
Price to free cash flow 11.82 25.83 7.31
EV/EBITDA 9.42 5.75 6.36
EV/Sales 2.64 2.14 0.58
Earnings yield 7.71% 3.38% 3.29%
Free cash flow yield 8.46% 3.87% 3.03%

Profitability

Metric LOPE MH Education & Training Services median
Gross margin 0.00% 81.68% 55.03%
Operating margin 27.27% 13.43% 0.00%
Net margin 21.85% 3.55% 1.77%
Free cash flow margin 23.06% 4.00% 0.00%
Return on equity 35.91% 8.83% 0.00%
Return on assets 26.04% 1.26% 0.00%
Return on invested capital 41.01% 5.51% 0.00%

Growth

Metric LOPE MH Education & Training Services median
Revenue growth (TTM) 5.30% (0.70%) 5.84%
EPS growth (last fiscal year) (0.26%) 136.88% 14.71%
Revenue growth, 5-year CAGR 5.55% — 4.24%
Net income growth, 5-year CAGR (3.42%) — 0.00%

Health

Metric LOPE MH Education & Training Services median
Debt to equity 0.00 2.88 0.05
Current ratio 2.64 0.86 1.37
Net debt to EBITDA (0.98) 3.07 (0.04)

Dividend

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

Size

Metric LOPE MH Education & Training Services median
Market cap 3.19b 2.15b 59.54m

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