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 $1.3B against $1.1B — 1.2× the size. Universal Technical Institute Inc trades at the lower P/E: 31.3× against 200×. Universal Technical Institute Inc grew revenue faster over the last twelve months: 9.15% against 2.79%. Universal Technical Institute Inc has the higher net margin (3.88% vs 0.74%) and the higher return on invested capital (8.42% vs 2.52%). Across the 21 metrics below, Universal Technical Institute Inc leads on 12 and Strategic Education Inc. on 9.

Valuation

Metric STRA UTI Education & Training Services median
P/E 199.59 31.26 12.09
P/S 0.94 1.22 0.80
P/B 0.81 3.14 1.39
Price to free cash flow 7.26 n/m 7.31
EV/EBITDA 5.06 9.94 6.36
EV/Sales 0.89 1.21 0.58
Earnings yield 0.50% 3.20% 3.29%
Free cash flow yield 13.77% (2.53%) 3.03%

Profitability

Metric STRA UTI Education & Training Services median
Gross margin 49.19% 48.11% 55.03%
Operating margin 4.31% 5.01% 0.00%
Net margin 0.74% 3.88% 1.77%
Free cash flow margin 16.47% (3.10%) 0.00%
Return on equity 0.60% 10.53% 0.00%
Return on assets 0.47% 4.19% 0.00%
Return on invested capital 2.52% 8.42% 0.00%

Growth

Metric STRA UTI Education & Training Services median
Revenue growth (TTM) 2.79% 9.15% 5.84%
EPS growth (last fiscal year) 15.85% 50.67% 14.71%
Revenue growth, 5-year CAGR 4.30% 22.68% 4.24%
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 0.05
Current ratio 1.08 1.30 1.37
Net debt to EBITDA (0.66) (0.63) (0.04)

Dividend

Metric STRA UTI Education & Training Services median
Dividend yield 4.15% — 2.64%
Payout ratio 14.12 — 0.26

Size

Metric STRA UTI Education & Training Services median
Market cap 1.30b 1.08b 59.54m

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