Chegg vs Amazon.com Which Is More Reliable?

Chegg and Amazon.com are two major players in the e-commerce and education technology sectors, each offering unique opportunities for investors. Chegg is a leading provider of online textbook rentals, homework help, and tutoring services, catering to the needs of students worldwide. On the other hand, Amazon.com is a global e-commerce giant, dominating various industries such as retail, cloud computing, and entertainment. Both companies have seen significant growth in their stock prices in recent years, but they differ in terms of their business focus and growth potential.

Chegg or Amazon.com?

When comparing Chegg and Amazon.com, 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 Amazon.com.

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 Amazon.com 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, Amazon.com 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 -0.28 and Amazon.com's P/E ratio at 47.90. 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 1.23 while Amazon.com's P/B ratio is 9.22.

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 Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chegg's ROE at -133.62% and Amazon.com's ROE at 21.82%.

Retail Investors:

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