Coursera vs 2U

Coursera and 2U are two leading companies in the online education industry, offering a range of courses and degree programs to students around the world. Coursera is a popular platform that partners with top universities to provide online courses, while 2U focuses on creating and delivering online degree programs on behalf of universities. Both companies have experienced significant growth in recent years, but each has its own unique strengths and weaknesses, making them compelling options for investors looking to capitalize on the growing demand for online education.

Coursera or 2U?

When comparing Coursera 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 Coursera 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. Coursera 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. Coursera 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 Coursera P/E ratio at -12.29 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. Coursera P/B ratio is 2.03 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, Coursera has seen a 5-year revenue growth of 2.03%, while 2U's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coursera's ROE at -15.95% and 2U's ROE at -650.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.50 for Coursera and $1.53 for 2U. Over the past year, Coursera's prices ranged from $6.35 to $21.26, with a yearly change of 234.80%. 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.