WallStSmart

Stride Inc (LRN)vsMcGraw Hill, Inc. (MH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Stride Inc generates 21% more annual revenue ($2.54B vs $2.10B). LRN leads profitability with a 12.1% profit margin vs 1.7%. LRN trades at a lower P/E of 15.3x. LRN earns a higher WallStSmart Score of 65/100 (B-).

LRN

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 7.5Value: 6.7Quality: 8.5
Piotroski: 4/9Altman Z: 3.92

MH

Hold

37

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 7/9Altman Z: 0.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LRNOvervalued (-12.2%)

Margin of Safety

-12.2%

Fair Value

$87.11

Current Price

$101.96

$14.85 premium

UndervaluedFair: $87.11Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LRN5 strengths · Avg: 8.4/10
Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.558/10

Growing faster than its price suggests

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

MH0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

LRN2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

MH4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

P/E RatioValuation
61.9x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-9.2%2/10

ROE of -9.2% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : LRN

The strongest argument for LRN centers on Altman Z-Score, PEG Ratio, P/E Ratio. PEG of 0.55 suggests the stock is reasonably priced for its growth.

Bull Case : MH

MH has a balanced fundamental profile.

Bear Case : LRN

The primary concerns for LRN are Revenue Growth, EPS Growth.

Bear Case : MH

The primary concerns for MH are EPS Growth, Profit Margin, P/E Ratio. A P/E of 61.9x leaves little room for execution misses. Debt-to-equity of 3.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

LRN is growing revenue faster at 2.7% — sustainability is the question.

MH generates stronger free cash flow (308M), providing more financial flexibility.

Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LRN scores higher overall (65/100 vs 37/100). Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Stride Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Stride, Inc., a technology-based education company, provides its own and third-party online educational services, software systems and curricula to facilitate individualized learning for students primarily in kindergarten through grade 12 (K -12) in the United States and internationally. .

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McGraw Hill, Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.

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