Chegg vs Coursera Which Is More Profitable?

Chegg and Coursera are two leading companies in the education technology sector, each offering unique opportunities for investors. Chegg provides online tutoring services, textbook rentals, and study tools for students, while Coursera offers online courses and certifications from top universities and institutions. Both companies have experienced significant growth in recent years, but their stock performance has differed. Chegg's stock has shown strong upward momentum due to its focus on student services, while Coursera's stock has also performed well as demand for online education continues to rise. Investors may need to carefully consider the strengths and weaknesses of each company before making investment decisions.

Chegg or Coursera?

When comparing Chegg and Coursera, 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 Coursera.

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 Coursera 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, Coursera 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 -0.31 and Coursera's P/E ratio at -17.11. 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 1.38 while Coursera's P/B ratio is 2.26.

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 Coursera's is 2.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chegg's ROE at -133.62% and Coursera's ROE at -13.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.40 for Chegg and $8.27 for Coursera. Over the past year, Chegg's prices ranged from $1.34 to $11.48, with a yearly change of 756.72%. Coursera's prices fluctuated between $6.29 and $21.26, with a yearly change of 238.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.