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 $2.2B against $1.7B — 1.3× the size. Perdoceo Education Corporation trades at the lower P/E: 9.2× against 29.6×. Perdoceo Education Corporation grew revenue faster over the last twelve months: 6.38% against −0.70%. Perdoceo Education Corporation has the higher net margin (21.1% vs 3.55%) and the higher return on invested capital (49.9% vs 5.51%). 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 29.58 9.23 12.09
P/S 1.03 1.93 0.80
P/B 2.45 1.59 1.39
Price to free cash flow 25.83 6.51 7.31
EV/EBITDA 5.75 3.54 6.36
EV/Sales 2.14 1.04 0.58
Earnings yield 3.38% 10.83% 3.29%
Free cash flow yield 3.87% 15.36% 3.03%

Profitability

Metric MH PRDO Education & Training Services median
Gross margin 81.68% 0.00% 55.03%
Operating margin 13.43% 24.93% 0.00%
Net margin 3.55% 21.06% 1.77%
Free cash flow margin 4.00% 29.70% 0.00%
Return on equity 8.83% 17.77% 0.00%
Return on assets 1.26% 13.68% 0.00%
Return on invested capital 5.51% 49.85% 0.00%

Growth

Metric MH PRDO Education & Training Services median
Revenue growth (TTM) (0.70%) 6.38% 5.84%
EPS growth (last fiscal year) 136.88% 10.50% 14.71%
Revenue growth, 5-year CAGR — 4.24% 4.24%
Net income growth, 5-year CAGR — 5.17% 0.00%

Health

Metric MH PRDO Education & Training Services median
Debt to equity 2.88 0.00 0.05
Current ratio 0.86 4.54 1.37
Net debt to EBITDA 3.07 (2.52) (0.04)

Dividend

Metric MH PRDO Education & Training Services median
Dividend yield — 2.32% 2.64%
Payout ratio — 0.22 0.26

Size

Metric MH PRDO Education & Training Services median
Market cap 2.15b 1.66b 59.54m

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