Education & Training Services
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LRN vs ATGE
Revenue, margins, valuation, and 5-year total return — side by side.
Education & Training Services
LRN vs ATGE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Education & Training Services | Education & Training Services |
| Market Cap | $3.90B | $3.70B |
| Revenue (TTM) | $2.54B | $1.89B |
| Net Income (TTM) | $308M | $253M |
| Gross Margin | 38.3% | 58.1% |
| Operating Margin | 15.8% | 19.3% |
| Forward P/E | 13.0x | 13.4x |
| Total Debt | $550M | $774M |
| Cash & Equiv. | $782M | $200M |
LRN vs ATGE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Stride, Inc. (LRN) | 100 | 372.4 | +272.4% |
| Adtalem Global Educ… (ATGE) | 100 | 292.9 | +192.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LRN vs ATGE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
LRN has the current edge in this matchup, primarily because of its strength in income & stability and growth exposure.
- Dividend streak 1 yrs, beta 0.46
- Rev growth 17.9%, EPS growth 26.9%, 3Y rev CAGR 12.6%
- 6.7% 10Y total return vs ATGE's 469.5%
ATGE is the clearest fit if your priority is defensive.
- Beta 0.27, current ratio 0.82x
- 13.4% margin vs LRN's 12.2%
- Beta 0.27 vs LRN's 0.46
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 17.9% revenue growth vs ATGE's 12.9% | |
| Value | Lower P/E (13.0x vs 13.4x), PEG 0.22 vs 2.18 | |
| Quality / Margins | 13.4% margin vs LRN's 12.2% | |
| Stability / Safety | Beta 0.27 vs LRN's 0.46 | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | -7.1% vs LRN's -42.3% | |
| Efficiency (ROA) | 13.1% ROA vs ATGE's 9.7%, ROIC 22.0% vs 12.8% |
LRN vs ATGE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
LRN vs ATGE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
ATGE leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LRN and ATGE operate at a comparable scale, with $2.5B and $1.9B in trailing revenue. Profitability is closely matched — net margins range from 13.4% (ATGE) to 12.2% (LRN). On growth, ATGE holds the edge at +12.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $2.5B | $1.9B |
| EBITDAEarnings before interest/tax | $525M | $450M |
| Net IncomeAfter-tax profit | $308M | $253M |
| Free Cash FlowCash after capex | $400M | $368M |
| Gross MarginGross profit ÷ Revenue | +38.3% | +58.1% |
| Operating MarginEBIT ÷ Revenue | +15.8% | +19.3% |
| Net MarginNet income ÷ Revenue | +12.2% | +13.4% |
| FCF MarginFCF ÷ Revenue | +15.8% | +19.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.7% | +12.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -7.4% | +6.1% |
Valuation Metrics
LRN leads this category, winning 6 of 7 comparable metrics.
Valuation Metrics
At 15.4x trailing earnings, LRN trades at a 12% valuation discount to ATGE's 17.6x P/E. Adjusting for growth (PEG ratio), LRN offers better value at 0.26x vs ATGE's 2.85x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ||
|---|---|---|
| Market CapShares × price | $3.9B | $3.7B |
| Enterprise ValueMkt cap + debt − cash | $3.7B | $4.3B |
| Trailing P/EPrice ÷ TTM EPS | 15.41x | 17.57x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.02x | 13.44x |
| PEG RatioP/E ÷ EPS growth rate | 0.26x | 2.85x |
| EV / EBITDAEnterprise value multiple | 7.73x | 10.85x |
| Price / SalesMarket cap ÷ Revenue | 1.62x | 2.07x |
| Price / BookPrice ÷ Book value/share | 3.00x | 2.85x |
| Price / FCFMarket cap ÷ FCF | 10.47x | 12.85x |
Profitability & Efficiency
LRN leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
LRN delivers a 19.9% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $18 for ATGE. LRN carries lower financial leverage with a 0.37x debt-to-equity ratio, signaling a more conservative balance sheet compared to ATGE's 0.54x. On the Piotroski fundamental quality scale (0–9), ATGE scores 8/9 vs LRN's 7/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +19.9% | +18.4% |
| ROA (TTM)Return on assets | +13.1% | +9.7% |
| ROICReturn on invested capital | +22.0% | +12.8% |
| ROCEReturn on capital employed | +19.6% | +15.2% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 8 |
| Debt / EquityFinancial leverage | 0.37x | 0.54x |
| Net DebtTotal debt minus cash | -$233M | $574M |
| Cash & Equiv.Liquid assets | $782M | $200M |
| Total DebtShort + long-term debt | $550M | $774M |
| Interest CoverageEBIT ÷ Interest expense | 36.09x | 8.55x |
Total Returns (Dividends Reinvested)
Evenly matched — LRN and ATGE each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LRN five years ago would be worth $32,308 today (with dividends reinvested), compared to $28,908 for ATGE. Over the past 12 months, ATGE leads with a -7.1% total return vs LRN's -42.3%. The 3-year compound annual growth rate (CAGR) favors ATGE at 37.0% vs LRN's 30.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +41.9% | +2.1% |
| 1-Year ReturnPast 12 months | -42.3% | -7.1% |
| 3-Year ReturnCumulative with dividends | +122.2% | +157.0% |
| 5-Year ReturnCumulative with dividends | +223.1% | +189.1% |
| 10-Year ReturnCumulative with dividends | +666.0% | +469.5% |
| CAGR (3Y)Annualised 3-year return | +30.5% | +37.0% |
Risk & Volatility
ATGE leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ATGE is the less volatile stock with a 0.27 beta — it tends to amplify market swings less than LRN's 0.46 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ATGE currently trades 68.2% from its 52-week high vs LRN's 53.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.46x | 0.27x |
| 52-Week HighHighest price in past year | $171.17 | $156.26 |
| 52-Week LowLowest price in past year | $60.61 | $86.97 |
| % of 52W HighCurrent price vs 52-week peak | +53.6% | +68.2% |
| RSI (14)Momentum oscillator 0–100 | 49.4 | 57.3 |
| Avg Volume (50D)Average daily shares traded | 744K | 284K |
Analyst Outlook
LRN leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates LRN as "Hold" and ATGE as "Buy". Consensus price targets imply 29.4% upside for ATGE (target: $138) vs 19.4% for LRN (target: $110).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $109.50 | $138.00 |
| # AnalystsCovering analysts | 17 | 3 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.5% | +5.8% |
LRN leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). ATGE leads in 2 (Income & Cash Flow, Risk & Volatility). 1 tied.
LRN vs ATGE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LRN or ATGE a better buy right now?
For growth investors, Stride, Inc.
(LRN) is the stronger pick with 17. 9% revenue growth year-over-year, versus 12. 9% for Adtalem Global Education Inc. (ATGE). Stride, Inc. (LRN) offers the better valuation at 15. 4x trailing P/E (13. 0x forward), making it the more compelling value choice. Analysts rate Adtalem Global Education Inc. (ATGE) a "Buy" — based on 3 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — LRN or ATGE?
On trailing P/E, Stride, Inc.
(LRN) is the cheapest at 15. 4x versus Adtalem Global Education Inc. at 17. 6x. On forward P/E, Stride, Inc. is actually cheaper at 13. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Stride, Inc. wins at 0. 22x versus Adtalem Global Education Inc. 's 2. 18x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — LRN or ATGE?
Over the past 5 years, Stride, Inc.
(LRN) delivered a total return of +223. 1%, compared to +189. 1% for Adtalem Global Education Inc. (ATGE). Over 10 years, the gap is even starker: LRN returned +666. 0% versus ATGE's +469. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LRN or ATGE?
By beta (market sensitivity over 5 years), Adtalem Global Education Inc.
(ATGE) is the lower-risk stock at 0. 27β versus Stride, Inc. 's 0. 46β — meaning LRN is approximately 68% more volatile than ATGE relative to the S&P 500. On balance sheet safety, Stride, Inc. (LRN) carries a lower debt/equity ratio of 37% versus 54% for Adtalem Global Education Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — LRN or ATGE?
By revenue growth (latest reported year), Stride, Inc.
(LRN) is pulling ahead at 17. 9% versus 12. 9% for Adtalem Global Education Inc. (ATGE). On earnings-per-share growth, the picture is similar: Adtalem Global Education Inc. grew EPS 79. 1% year-over-year, compared to 26. 9% for Stride, Inc.. Over a 3-year CAGR, LRN leads at 12. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — LRN or ATGE?
Adtalem Global Education Inc.
(ATGE) is the more profitable company, earning 13. 3% net margin versus 12. 0% for Stride, Inc. — meaning it keeps 13. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ATGE leads at 19. 1% versus 15. 0% for LRN. At the gross margin level — before operating expenses — ATGE leads at 56. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is LRN or ATGE more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Stride, Inc. (LRN) is the more undervalued stock at a PEG of 0. 22x versus Adtalem Global Education Inc. 's 2. 18x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Stride, Inc. (LRN) trades at 13. 0x forward P/E versus 13. 4x for Adtalem Global Education Inc. — 0. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ATGE: 29. 4% to $138. 00.
08Which pays a better dividend — LRN or ATGE?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is LRN or ATGE better for a retirement portfolio?
For long-horizon retirement investors, Adtalem Global Education Inc.
(ATGE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 27), +469. 5% 10Y return). Both have compounded well over 10 years (ATGE: +469. 5%, LRN: +666. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between LRN and ATGE?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: LRN is a small-cap high-growth stock; ATGE is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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