Chegg vs Fastly Which Is More Profitable?

Chegg and Fastly are two prominent technology companies that operate in different sectors of the industry. Chegg is a leading provider of online educational services, offering a range of resources for students such as textbooks, study materials, and tutoring services. On the other hand, Fastly is a content delivery network (CDN) company that helps websites deliver their content faster and more efficiently. Both companies have experienced significant growth in recent years, but their stock performances have differed due to varying market dynamics and investor sentiments.

Chegg or Fastly?

When comparing Chegg and Fastly, 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 Fastly.

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 Fastly 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, Fastly 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 Fastly's P/E ratio at -9.82. 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 Fastly's P/B ratio is 1.51.

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 Fastly's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chegg's ROE at -133.62% and Fastly's ROE at -15.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.09 for Chegg and $10.38 for Fastly. Over the past year, Chegg's prices ranged from $1.34 to $11.48, with a yearly change of 756.72%. Fastly's prices fluctuated between $5.52 and $25.87, with a yearly change of 368.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.