Amazon.com vs Chegg Which Is Stronger?

Amazon.com and Chegg are two prominent companies in the e-commerce and educational technology sectors, respectively. As both companies continue to experience growth and success in their respective industries, investors may find themselves debating which stock to invest in. While Amazon.com boasts a diverse range of products and services, Chegg specializes in providing online education tools and resources. Both companies have shown resilience and adaptability in the ever-changing market, making them compelling options for potential investors.

Amazon.com or Chegg?

When comparing Amazon.com 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 Amazon.com 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. Amazon.com 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. Amazon.com 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 Amazon.com P/E ratio at 47.90 and Chegg's P/E ratio at -0.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 9.22 while Chegg's P/B ratio is 1.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Chegg's is 1.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Chegg's ROE at -133.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $225.86 for Amazon.com and $2.09 for Chegg. Over the past year, Amazon.com's prices ranged from $144.05 to $231.20, with a yearly change of 60.50%. Chegg's prices fluctuated between $1.34 and $11.48, with a yearly change of 756.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.