Stride, Inc. (LRN) vs Twenty One Capital, Inc. (XXI)

Stride, Inc. and Twenty One Capital, Inc. are both Education & Training Services companies. Twenty One Capital, Inc. is the larger, with a market value of $3.5B against $3.2B — 1.1× the size. Twenty One Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; Stride, Inc. trades at 9.5×. Stride, Inc. has the higher net margin (13.2% vs 0.00%) and the higher return on invested capital (20.7% vs −0.86%). Across the 13 metrics below, Stride, Inc. leads on 9 and Twenty One Capital, Inc. on 4.

Valuation

Metric LRN XXI Education & Training Services median
P/E 9.51 n/m 12.09
P/S 1.23 n/m 0.80
P/B 1.86 1.39 1.39
Price to free cash flow 7.36 n/m 7.31
EV/EBITDA 4.75 n/m 6.36
EV/Sales 1.12 n/m 0.58
Earnings yield 10.52% (101.23%) 3.29%
Free cash flow yield 13.59% (0.46%) 3.03%

Profitability

Metric LRN XXI Education & Training Services median
Gross margin 37.44% — 55.03%
Operating margin 18.37% 0.00% 0.00%
Net margin 13.18% 0.00% 1.77%
Free cash flow margin 16.68% 0.00% 0.00%
Return on equity 20.90% (137.05%) 0.00%
Return on assets 13.75% (107.69%) 0.00%
Return on invested capital 20.72% (0.86%) 0.00%

Growth

Metric LRN XXI Education & Training Services median
Revenue growth (TTM) 2.48% — 5.84%
EPS growth (last fiscal year) 20.00% (1,639.74%) 14.71%
Revenue growth, 5-year CAGR 10.38% — 4.24%
Net income growth, 5-year CAGR 36.47% — 0.00%

Health

Metric LRN XXI Education & Training Services median
Debt to equity 0.31 0.22 0.05
Current ratio 2.56 71.05 1.37
Net debt to EBITDA (0.84) (25.23) (0.04)

Dividend

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

Size

Metric LRN XXI Education & Training Services median
Market cap 3.15b 3.48b 59.54m

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