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 $3.3B against $1.8B — 1.9× the size. Stride, Inc. trades at the lower P/E: 9.9× against 12.5×. 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 9.92 12.49 11.19
P/S 1.33 1.28 0.92
P/B 2.06 1.01 1.63
Price to free cash flow 9.45 9.62 9.62
EV/EBITDA 5.05 7.02 7.02
EV/Sales 1.16 1.24 0.82
Earnings yield 10.08% 8.00% 3.17%
Free cash flow yield 10.58% 10.40% 2.30%

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% 3.29%
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% —
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 0.08
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 — 2.48% 1.13%
Payout ratio 0.00 1.57 0.00

Size

Metric LRN STRA Education & Training Services median
Market cap 3.33b 1.77b 68.93m

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