McGraw Hill, Inc. (MH) vs Perdoceo Education Corporation (PRDO)

McGraw Hill, Inc. and Perdoceo Education Corporation are both Education & Training Services companies. McGraw Hill, Inc. is the larger, with a market value of $2.7B against $2.1B — 1.3× the size. Perdoceo Education Corporation trades at the lower P/E: 12.0× against 27.7×. Perdoceo Education Corporation grew revenue faster over the last twelve months: 11.7% against 0.14%. Perdoceo Education Corporation has the higher net margin (20.6% vs 4.38%) and the higher return on invested capital (43.7% vs 5.81%). Across the 20 metrics below, Perdoceo Education Corporation leads on 17 and McGraw Hill, Inc. on 3.

Valuation

Metric MH PRDO Education & Training Services median
P/E 27.68 12.00 13.22
P/S 1.25 2.46 0.99
P/B 3.36 2.05 1.62
Price to free cash flow 12.89 9.70 10.06
EV/EBITDA 6.51 5.54 8.56
EV/Sales 2.37 1.61 0.78
Earnings yield 3.61% 8.33% 3.17%
Free cash flow yield 7.76% 10.31% 2.81%

Profitability

Metric MH PRDO Education & Training Services median
Gross margin 81.65% 77.09% 54.64%
Operating margin 13.93% 24.56% 0.00%
Net margin 4.38% 20.63% 2.98%
Free cash flow margin 9.70% 25.39% 0.00%
Return on equity 17.30% 17.55% 0.00%
Return on assets 1.68% 13.47% 0.00%
Return on invested capital 5.81% 43.68% 0.00%

Growth

Metric MH PRDO Education & Training Services median
Revenue growth (TTM) 0.14% 11.68% 6.97%
EPS growth (last fiscal year) 136.88% 10.50% 15.68%
Revenue growth, 5-year CAGR — 4.24% 4.27%
Net income growth, 5-year CAGR — 5.17% 0.00%

Health

Metric MH PRDO Education & Training Services median
Debt to equity 3.27 0.00 0.05
Current ratio 0.78 4.69 1.33
Net debt to EBITDA 3.07 (2.52) (0.15)

Dividend

Metric MH PRDO Education & Training Services median
Dividend yield — 1.84% 1.84%
Payout ratio — 0.23 0.23

Size

Metric MH PRDO Education & Training Services median
Market cap 2.72b 2.12b 68.84m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack