Strategic Education Inc. (STRA) vs Universal Technical Institute Inc (UTI)

Strategic Education Inc. and Universal Technical Institute Inc are both Education & Training Services companies. Strategic Education Inc. is the larger, with a market value of $1.8B against $1.1B — 1.6× the size. Strategic Education Inc. trades at the lower P/E: 12.5× against 32.3×. Universal Technical Institute Inc grew revenue faster over the last twelve months: 9.15% against 3.53%. Strategic Education Inc. has the higher net margin (10.5% vs 3.88%) and the lower return on invested capital (7.49% vs 8.42%). Across the 21 metrics below, Strategic Education Inc. leads on 13 and Universal Technical Institute Inc on 8.

Valuation

Metric STRA UTI Education & Training Services median
P/E 12.49 32.33 11.19
P/S 1.28 1.27 0.92
P/B 1.01 3.25 1.63
Price to free cash flow 9.62 n/m 9.62
EV/EBITDA 7.02 10.29 7.02
EV/Sales 1.24 1.25 0.82
Earnings yield 8.00% 3.09% 3.17%
Free cash flow yield 10.40% (2.45%) 2.30%

Profitability

Metric STRA UTI Education & Training Services median
Gross margin 49.06% 48.11% 54.64%
Operating margin 14.01% 5.01% 0.00%
Net margin 10.46% 3.88% 3.29%
Free cash flow margin 13.28% (3.10%) 0.00%
Return on equity 8.15% 10.53% 0.00%
Return on assets 6.47% 4.19% 0.00%
Return on invested capital 7.49% 8.42% 0.00%

Growth

Metric STRA UTI Education & Training Services median
Revenue growth (TTM) 3.53% 9.15% 6.97%
EPS growth (last fiscal year) 15.85% 50.67% —
Revenue growth, 5-year CAGR 4.30% 22.68% 4.27%
Net income growth, 5-year CAGR 7.98% 108.25% 0.00%

Health

Metric STRA UTI Education & Training Services median
Debt to equity 0.00 0.46 0.08
Current ratio 1.10 1.30 1.33
Net debt to EBITDA (0.66) (0.63) (0.15)

Dividend

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

Size

Metric STRA UTI Education & Training Services median
Market cap 1.77b 1.14b 68.93m

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