2U vs Chegg

2U and Chegg are two companies in the education technology sector that have seen significant growth in recent years. 2U provides online higher education programs in partnership with universities, while Chegg offers a variety of educational services, including textbook rentals and online tutoring. Both companies have generated strong investor interest, but there are some key differences in their business models and growth prospects. This article will compare the stocks of 2U and Chegg, analyzing their financial performance and potential for future success.

2U or Chegg?

When comparing 2U and Chegg, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between 2U and Chegg.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. 2U has a dividend yield of -%, while Chegg has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. 2U reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Chegg reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with 2U P/E ratio at -0.01 and Chegg's P/E ratio at -0.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. 2U P/B ratio is -0.02 while Chegg's P/B ratio is 0.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, 2U has seen a 5-year revenue growth of 0.59%, while Chegg's is 1.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with 2U's ROE at -650.85% and Chegg's ROE at -75.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.53 for 2U and $1.49 for Chegg. Over the past year, 2U's prices ranged from $1.05 to $128.10, with a yearly change of 12100.00%. Chegg's prices fluctuated between $1.48 and $11.48, with a yearly change of 675.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.