Perdoceo Education Corporation (PRDO) vs Strategic Education Inc. (STRA)

Perdoceo Education Corporation and Strategic Education Inc. are both Education & Training Services companies. Perdoceo Education Corporation is the larger, with a market value of $2.1B against $1.8B — 1.2× the size. Perdoceo Education Corporation trades at the lower P/E: 12.0× against 13.2×. Perdoceo Education Corporation grew revenue faster over the last twelve months: 11.7% against 3.53%. Perdoceo Education Corporation has the higher net margin (20.6% vs 10.5%) and the higher return on invested capital (43.7% vs 7.49%). Both pay a dividend; Strategic Education Inc. yields more (2.95% vs 1.84%). Across the 23 metrics below, Perdoceo Education Corporation leads on 15 and Strategic Education Inc. on 8.

Valuation

Metric PRDO STRA Education & Training Services median
P/E 12.00 13.22 13.22
P/S 2.46 1.35 0.99
P/B 2.05 1.06 1.62
Price to free cash flow 9.70 10.18 10.06
EV/EBITDA 5.54 7.37 8.56
EV/Sales 1.61 1.30 0.78
Earnings yield 8.33% 7.56% 3.17%
Free cash flow yield 10.31% 9.82% 2.81%

Profitability

Metric PRDO STRA Education & Training Services median
Gross margin 77.09% 49.06% 54.64%
Operating margin 24.56% 14.01% 0.00%
Net margin 20.63% 10.46% 2.98%
Free cash flow margin 25.39% 13.28% 0.00%
Return on equity 17.55% 8.15% 0.00%
Return on assets 13.47% 6.47% 0.00%
Return on invested capital 43.68% 7.49% 0.00%

Growth

Metric PRDO STRA Education & Training Services median
Revenue growth (TTM) 11.68% 3.53% 6.97%
EPS growth (last fiscal year) 10.50% 15.85% 15.68%
Revenue growth, 5-year CAGR 4.24% 4.30% 4.27%
Net income growth, 5-year CAGR 5.17% 7.98% 0.00%

Health

Metric PRDO STRA Education & Training Services median
Debt to equity 0.00 0.00 0.05
Current ratio 4.69 1.10 1.33
Net debt to EBITDA (2.52) (0.66) (0.15)

Dividend

Metric PRDO STRA Education & Training Services median
Dividend yield 1.84% 2.95% 1.84%
Payout ratio 0.23 0.40 0.23

Size

Metric PRDO STRA Education & Training Services median
Market cap 2.12b 1.83b 68.84m

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