Chegg (CHGG) and Its Peers Financial Comparison

Chegg (NYSE: CHGG) is one of 40 public companies in the “Educational services” industry, but how does it compare to its competitors? We will compare Chegg to similar companies based on the strength of its risk, dividends, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Earnings & Valuation

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This table compares Chegg and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Chegg $255.07 million -$20.28 million -231.11
Chegg Competitors $529.67 million $30.81 million 18.16

Chegg’s competitors have higher revenue and earnings than Chegg. Chegg is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Chegg and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chegg -7.95% -2.37% -1.97%
Chegg Competitors -15.26% -23.60% -7.29%

Insider & Institutional Ownership

51.0% of shares of all “Educational services” companies are held by institutional investors. 20.4% of Chegg shares are held by company insiders. Comparatively, 26.0% of shares of all “Educational services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Chegg has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Chegg’s competitors have a beta of 0.81, indicating that their average stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Chegg and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chegg 0 4 6 0 2.60
Chegg Competitors 122 589 673 11 2.41

Chegg presently has a consensus price target of $19.10, suggesting a potential downside of 8.17%. As a group, “Educational services” companies have a potential upside of 8.99%. Given Chegg’s competitors higher possible upside, analysts clearly believe Chegg has less favorable growth aspects than its competitors.

Summary

Chegg competitors beat Chegg on 7 of the 13 factors compared.

About Chegg

Chegg, Inc. is a student-first connected learning platform. The Company helps students study for college admission exams, find the colleges, get grades and test scores while in school, and find internships that allow them to gain skills to help them enter the workforce after college. The Company matches domestic and international students with colleges, universities and other academic institutions (collectively referred to as colleges) in the United States. It also offers eTextbooks library for rent and sale. The Company also has live tutors on its connected learning platform available to students online, anytime, anywhere through its Chegg Tutors service. It provides access to internships to help students gain skills that are critical to securing their first job. It offers two product lines: Required Materials and Chegg Services. The Required Materials product line includes the rental and sale of print textbooks and eTextbooks, as well as the commission it receives from Ingram.

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