Grand Canyon Education, Inc. (LOPE) vs Strategic Education Inc. (STRA)

Grand Canyon Education, Inc. and Strategic Education Inc. are both Education & Training Services companies. Grand Canyon Education, Inc. is the larger, with a market value of $3.9B against $1.8B — 2.2× the size. Strategic Education Inc. trades at the lower P/E: 12.5× against 17.7×. Grand Canyon Education, Inc. grew revenue faster over the last twelve months: 6.97% against 3.53%. Grand Canyon Education, Inc. has the higher net margin (19.6% vs 10.5%) and the higher return on invested capital (44.3% vs 7.49%). Across the 21 metrics below, Grand Canyon Education, Inc. leads on 11 and Strategic Education Inc. on 10.

Valuation

Metric LOPE STRA Education & Training Services median
P/E 17.70 12.49 11.19
P/S 3.37 1.28 0.92
P/B 5.76 1.01 1.63
Price to free cash flow 15.89 9.62 9.62
EV/EBITDA 11.40 7.02 7.02
EV/Sales 3.21 1.24 0.82
Earnings yield 5.65% 8.00% 3.17%
Free cash flow yield 6.30% 10.40% 2.30%

Profitability

Metric LOPE STRA Education & Training Services median
Gross margin 53.27% 49.06% 54.64%
Operating margin 24.49% 14.01% 0.00%
Net margin 19.63% 10.46% 3.29%
Free cash flow margin 21.24% 13.28% 0.00%
Return on equity 30.98% 8.15% 0.00%
Return on assets 23.11% 6.47% 0.00%
Return on invested capital 44.26% 7.49% 0.00%

Growth

Metric LOPE STRA Education & Training Services median
Revenue growth (TTM) 6.97% 3.53% 6.97%
EPS growth (last fiscal year) (0.26%) 15.85% —
Revenue growth, 5-year CAGR 5.55% 4.30% 4.27%
Net income growth, 5-year CAGR (3.42%) 7.98% 0.00%

Health

Metric LOPE STRA Education & Training Services median
Debt to equity 0.00 0.00 0.08
Current ratio 2.82 1.10 1.33
Net debt to EBITDA (0.98) (0.66) (0.15)

Dividend

Metric LOPE STRA Education & Training Services median
Dividend yield — 2.48% 1.13%
Payout ratio 0.00 1.57 0.00

Size

Metric LOPE STRA Education & Training Services median
Market cap 3.94b 1.77b 68.93m

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