Chegg vs CrowdStrike Which Is a Better Investment?

Chegg and CrowdStrike are two very different companies operating in distinct sectors of the technology industry. Chegg is an education technology company focused on providing online textbook rentals, homework help, and tutoring services to students. CrowdStrike, on the other hand, is a cybersecurity company specializing in endpoint security and threat intelligence. Both companies have seen significant growth in recent years, but their stock performance and market outlooks differ due to the nature of their businesses and the trends impacting their respective industries.

Chegg or CrowdStrike?

When comparing Chegg and CrowdStrike, 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 CrowdStrike.

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 CrowdStrike 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, CrowdStrike 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 -0.22 and CrowdStrike's P/E ratio at 482.96. 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 0.96 while CrowdStrike's P/B ratio is 28.81.

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 CrowdStrike's is 12.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chegg's ROE at -133.62% and CrowdStrike's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.66 for Chegg and $332.75 for CrowdStrike. Over the past year, Chegg's prices ranged from $1.34 to $11.48, with a yearly change of 756.72%. CrowdStrike's prices fluctuated between $200.81 and $398.33, with a yearly change of 98.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.