Stride, Inc. (LRN) vs McGraw Hill, Inc. (MH)

Stride, Inc. and McGraw Hill, Inc. are both Education & Training Services companies. Stride, Inc. is the larger, with a market value of $3.3B against $2.6B — 1.3× the size. Stride, Inc. trades at the lower P/E: 9.9× against 25.5×. Stride, Inc. grew revenue faster over the last twelve months: 4.69% against 0.14%. Stride, Inc. has the higher net margin (13.4% vs 4.38%) and the higher return on invested capital (24.5% vs 5.81%). Across the 20 metrics below, Stride, Inc. leads on 17 and McGraw Hill, Inc. on 3.

Valuation

Metric LRN MH Education & Training Services median
P/E 9.92 25.46 11.19
P/S 1.33 1.15 0.92
P/B 2.06 3.09 1.63
Price to free cash flow 9.45 11.86 9.62
EV/EBITDA 5.05 6.23 7.02
EV/Sales 1.16 2.27 0.82
Earnings yield 10.08% 3.93% 3.17%
Free cash flow yield 10.58% 8.43% 2.30%

Profitability

Metric LRN MH Education & Training Services median
Gross margin 37.75% 81.65% 54.64%
Operating margin 17.90% 13.93% 0.00%
Net margin 13.43% 4.38% 3.29%
Free cash flow margin 14.10% 9.70% 0.00%
Return on equity 21.74% 17.30% 0.00%
Return on assets 14.30% 1.68% 0.00%
Return on invested capital 24.52% 5.81% 0.00%

Growth

Metric LRN MH Education & Training Services median
Revenue growth (TTM) 4.69% 0.14% 6.97%
EPS growth (last fiscal year) 20.00% 136.88% —
Revenue growth, 5-year CAGR 10.38% — 4.27%
Net income growth, 5-year CAGR 36.47% — 0.00%

Health

Metric LRN MH Education & Training Services median
Debt to equity 0.29 3.27 0.08
Current ratio 5.94 0.78 1.33
Net debt to EBITDA (0.84) 3.07 (0.15)

Dividend

Metric LRN MH Education & Training Services median
Dividend yield — — 1.13%
Payout ratio 0.00 — 0.00

Size

Metric LRN MH Education & Training Services median
Market cap 3.33b 2.62b 68.93m

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