Stride, Inc. (LRN) vs Strategic Education Inc. (STRA)

Stride, Inc. and Strategic Education Inc. are both Education & Training Services companies. Stride, Inc. is the larger, with a market value of $3.5B against $1.8B — 1.9× the size. Stride, Inc. trades at the lower P/E: 10.4× against 13.2×. Stride, Inc. grew revenue faster over the last twelve months: 4.69% against 3.53%. Stride, Inc. has the higher net margin (13.4% vs 10.5%) and the higher return on invested capital (24.5% vs 7.49%). Across the 22 metrics below, Stride, Inc. leads on 18 and Strategic Education Inc. on 4.

Valuation

Metric LRN STRA Education & Training Services median
P/E 10.43 13.22 13.22
P/S 1.40 1.35 0.99
P/B 2.16 1.06 1.62
Price to free cash flow 9.94 10.18 10.06
EV/EBITDA 5.43 7.37 8.56
EV/Sales 1.25 1.30 0.78
Earnings yield 9.59% 7.56% 3.17%
Free cash flow yield 10.06% 9.82% 2.81%

Profitability

Metric LRN STRA Education & Training Services median
Gross margin 37.75% 49.06% 54.64%
Operating margin 17.90% 14.01% 0.00%
Net margin 13.43% 10.46% 2.98%
Free cash flow margin 14.10% 13.28% 0.00%
Return on equity 21.74% 8.15% 0.00%
Return on assets 14.30% 6.47% 0.00%
Return on invested capital 24.52% 7.49% 0.00%

Growth

Metric LRN STRA Education & Training Services median
Revenue growth (TTM) 4.69% 3.53% 6.97%
EPS growth (last fiscal year) 20.00% 15.85% 15.68%
Revenue growth, 5-year CAGR 10.38% 4.30% 4.27%
Net income growth, 5-year CAGR 36.47% 7.98% 0.00%

Health

Metric LRN STRA Education & Training Services median
Debt to equity 0.29 0.00 0.05
Current ratio 5.94 1.10 1.33
Net debt to EBITDA (0.84) (0.66) (0.15)

Dividend

Metric LRN STRA Education & Training Services median
Dividend yield — 2.95% 1.84%
Payout ratio — 0.40 0.23

Size

Metric LRN STRA Education & Training Services median
Market cap 3.46b 1.83b 68.84m

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