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 $2.6B against $2.0B — 1.3× the size. Perdoceo Education Corporation trades at the lower P/E: 10.9× against 25.5×. 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 25.46 10.85 11.19
P/S 1.15 2.23 0.92
P/B 3.09 1.85 1.63
Price to free cash flow 11.86 8.77 9.62
EV/EBITDA 6.23 4.73 7.02
EV/Sales 2.27 1.37 0.82
Earnings yield 3.93% 9.22% 3.17%
Free cash flow yield 8.43% 11.41% 2.30%

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% 3.29%
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% —
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 0.08
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 — 1.24% 1.13%
Payout ratio — 0.00 0.00

Size

Metric MH PRDO Education & Training Services median
Market cap 2.62b 1.98b 68.93m

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