McGraw Hill, Inc. (MH) vs Strategic Education Inc. (STRA)

McGraw Hill, Inc. and Strategic Education Inc. are both Education & Training Services companies. McGraw Hill, Inc. is the larger, with a market value of $2.6B against $1.8B — 1.5× the size. Strategic Education Inc. trades at the lower P/E: 12.5× against 25.5×. Strategic Education Inc. grew revenue faster over the last twelve months: 3.53% against 0.14%. Strategic Education Inc. has the higher net margin (10.5% vs 4.38%) and the higher return on invested capital (7.49% vs 5.81%). Across the 20 metrics below, Strategic Education Inc. leads on 15 and McGraw Hill, Inc. on 5.

Valuation

Metric MH STRA Education & Training Services median
P/E 25.46 12.49 11.19
P/S 1.15 1.28 0.92
P/B 3.09 1.01 1.63
Price to free cash flow 11.86 9.62 9.62
EV/EBITDA 6.23 7.02 7.02
EV/Sales 2.27 1.24 0.82
Earnings yield 3.93% 8.00% 3.17%
Free cash flow yield 8.43% 10.40% 2.30%

Profitability

Metric MH STRA Education & Training Services median
Gross margin 81.65% 49.06% 54.64%
Operating margin 13.93% 14.01% 0.00%
Net margin 4.38% 10.46% 3.29%
Free cash flow margin 9.70% 13.28% 0.00%
Return on equity 17.30% 8.15% 0.00%
Return on assets 1.68% 6.47% 0.00%
Return on invested capital 5.81% 7.49% 0.00%

Growth

Metric MH STRA Education & Training Services median
Revenue growth (TTM) 0.14% 3.53% 6.97%
EPS growth (last fiscal year) 136.88% 15.85% —
Revenue growth, 5-year CAGR — 4.30% 4.27%
Net income growth, 5-year CAGR — 7.98% 0.00%

Health

Metric MH STRA Education & Training Services median
Debt to equity 3.27 0.00 0.08
Current ratio 0.78 1.10 1.33
Net debt to EBITDA 3.07 (0.66) (0.15)

Dividend

Metric MH STRA Education & Training Services median
Dividend yield — 2.48% 1.13%
Payout ratio — 1.57 0.00

Size

Metric MH STRA Education & Training Services median
Market cap 2.62b 1.77b 68.93m

Compare with another peer

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