AutoZone vs Chegg Which Outperforms?

AutoZone and Chegg are two companies operating in completely different industries, but both have seen significant growth in their stock prices in recent years. AutoZone is a leading retailer of automotive parts and accessories, while Chegg is a popular online education platform. Both companies have benefited from strong market demand and have demonstrated resilience during economic downturns. Investors may find the contrasting nature of these businesses intriguing as they consider their investment options.

AutoZone or Chegg?

When comparing AutoZone 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 AutoZone 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. AutoZone 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. AutoZone 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 AutoZone P/E ratio at 19.88 and Chegg's P/E ratio at -0.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AutoZone P/B ratio is -11.14 while Chegg's P/B ratio is 0.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AutoZone has seen a 5-year revenue growth of 1.27%, while Chegg's is 1.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AutoZone's ROE at -54.23% and Chegg's ROE at -133.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3100.09 for AutoZone and $1.66 for Chegg. Over the past year, AutoZone's prices ranged from $2510.00 to $3256.37, with a yearly change of 29.74%. 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.