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 $3.2B against $1.3B — 2.4× the size. Stride, Inc. trades at the lower P/E: 9.5× against 200×. Strategic Education Inc. grew revenue faster over the last twelve months: 2.79% against 2.48%. Stride, Inc. has the higher net margin (13.2% vs 0.74%) and the higher return on invested capital (20.7% vs 2.52%). Across the 22 metrics below, Stride, Inc. leads on 14 and Strategic Education Inc. on 8.

Valuation

Metric LRN STRA Education & Training Services median
P/E 9.51 199.59 12.09
P/S 1.23 0.94 0.80
P/B 1.86 0.81 1.39
Price to free cash flow 7.36 7.26 7.31
EV/EBITDA 4.75 5.06 6.36
EV/Sales 1.12 0.89 0.58
Earnings yield 10.52% 0.50% 3.29%
Free cash flow yield 13.59% 13.77% 3.03%

Profitability

Metric LRN STRA Education & Training Services median
Gross margin 37.44% 49.19% 55.03%
Operating margin 18.37% 4.31% 0.00%
Net margin 13.18% 0.74% 1.77%
Free cash flow margin 16.68% 16.47% 0.00%
Return on equity 20.90% 0.60% 0.00%
Return on assets 13.75% 0.47% 0.00%
Return on invested capital 20.72% 2.52% 0.00%

Growth

Metric LRN STRA Education & Training Services median
Revenue growth (TTM) 2.48% 2.79% 5.84%
EPS growth (last fiscal year) 20.00% 15.85% 14.71%
Revenue growth, 5-year CAGR 10.38% 4.30% 4.24%
Net income growth, 5-year CAGR 36.47% 7.98% 0.00%

Health

Metric LRN STRA Education & Training Services median
Debt to equity 0.31 0.00 0.05
Current ratio 2.56 1.08 1.37
Net debt to EBITDA (0.84) (0.66) (0.04)

Dividend

Metric LRN STRA Education & Training Services median
Dividend yield — 4.15% 2.64%
Payout ratio — 14.12 0.26

Size

Metric LRN STRA Education & Training Services median
Market cap 3.15b 1.30b 59.54m

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