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 $4.2B against $2.7B — 1.5× the size. Grand Canyon Education, Inc. trades at the lower P/E: 19.4× against 27.7×. Grand Canyon Education, Inc. grew revenue faster over the last twelve months: 6.97% against 0.14%. Grand Canyon Education, Inc. has the higher net margin (19.6% vs 4.38%) and the higher return on invested capital (44.3% vs 5.81%). Across the 20 metrics below, Grand Canyon Education, Inc. leads on 12 and McGraw Hill, Inc. on 8.

Valuation

Metric LOPE MH Education & Training Services median
P/E 19.42 27.68 13.22
P/S 3.70 1.25 0.99
P/B 6.31 3.36 1.62
Price to free cash flow 17.43 12.89 10.06
EV/EBITDA 12.48 6.51 8.56
EV/Sales 3.51 2.37 0.78
Earnings yield 5.15% 3.61% 3.17%
Free cash flow yield 5.74% 7.76% 2.81%

Profitability

Metric LOPE MH Education & Training Services median
Gross margin 53.27% 81.65% 54.64%
Operating margin 24.49% 13.93% 0.00%
Net margin 19.63% 4.38% 2.98%
Free cash flow margin 21.24% 9.70% 0.00%
Return on equity 30.98% 17.30% 0.00%
Return on assets 23.11% 1.68% 0.00%
Return on invested capital 44.26% 5.81% 0.00%

Growth

Metric LOPE MH Education & Training Services median
Revenue growth (TTM) 6.97% 0.14% 6.97%
EPS growth (last fiscal year) (0.26%) 136.88% 15.68%
Revenue growth, 5-year CAGR 5.55% — 4.27%
Net income growth, 5-year CAGR (3.42%) — 0.00%

Health

Metric LOPE MH Education & Training Services median
Debt to equity 0.00 3.27 0.05
Current ratio 2.82 0.78 1.33
Net debt to EBITDA (0.98) 3.07 (0.15)

Dividend

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

Size

Metric LOPE MH Education & Training Services median
Market cap 4.21b 2.72b 68.84m

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