Chegg vs 2U Which Offers More Value?

Chegg and 2U are both prominent players in the education technology sector, offering a range of innovative solutions for students and universities. Chegg is known for its textbook rental and online tutoring services, while 2U focuses on providing online degree programs for top universities. Both companies have seen significant growth in recent years as the demand for digital education continues to rise. Investors are closely watching how these companies perform in the rapidly evolving edtech market and are eager to see how their stocks stack up against each other.

Chegg or 2U?

When comparing Chegg and 2U, 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 Chegg and 2U.

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. Chegg has a dividend yield of -%, while 2U has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Chegg reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, 2U 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 Chegg P/E ratio at -0.30 and 2U's P/E ratio at -0.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Chegg P/B ratio is 0.52 while 2U's P/B ratio is -0.02.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.74 for Chegg and $1.53 for 2U. Over the past year, Chegg's prices ranged from $1.48 to $11.48, with a yearly change of 675.68%. 2U's prices fluctuated between $1.05 and $128.10, with a yearly change of 12100.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.