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 $3.2B against $2.2B — 1.5× the size. Stride, Inc. trades at the lower P/E: 9.5× against 29.6×. Stride, Inc. grew revenue faster over the last twelve months: 2.48% against −0.70%. Stride, Inc. has the higher net margin (13.2% vs 3.55%) and the higher return on invested capital (20.7% vs 5.51%). 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 9.51 29.58 12.09
P/S 1.23 1.03 0.80
P/B 1.86 2.45 1.39
Price to free cash flow 7.36 25.83 7.31
EV/EBITDA 4.75 5.75 6.36
EV/Sales 1.12 2.14 0.58
Earnings yield 10.52% 3.38% 3.29%
Free cash flow yield 13.59% 3.87% 3.03%

Profitability

Metric LRN MH Education & Training Services median
Gross margin 37.44% 81.68% 55.03%
Operating margin 18.37% 13.43% 0.00%
Net margin 13.18% 3.55% 1.77%
Free cash flow margin 16.68% 4.00% 0.00%
Return on equity 20.90% 8.83% 0.00%
Return on assets 13.75% 1.26% 0.00%
Return on invested capital 20.72% 5.51% 0.00%

Growth

Metric LRN MH Education & Training Services median
Revenue growth (TTM) 2.48% (0.70%) 5.84%
EPS growth (last fiscal year) 20.00% 136.88% 14.71%
Revenue growth, 5-year CAGR 10.38% — 4.24%
Net income growth, 5-year CAGR 36.47% — 0.00%

Health

Metric LRN MH Education & Training Services median
Debt to equity 0.31 2.88 0.05
Current ratio 2.56 0.86 1.37
Net debt to EBITDA (0.84) 3.07 (0.04)

Dividend

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

Size

Metric LRN MH Education & Training Services median
Market cap 3.15b 2.15b 59.54m

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