Coursera vs Udemy Which Is More Promising?

Coursera and Udemy are two popular online learning platforms that offer a wide range of courses to millions of users worldwide. Both companies have seen significant growth in recent years, with Coursera going public in 2021 and Udemy exploring a potential IPO. Investors are closely watching the performance of these stocks, as the e-learning market continues to expand. Coursera's focus on partnering with universities and corporations sets it apart from Udemy's more flexible course creation model. Understanding the differences in their business strategies can help investors make informed decisions about which stock to invest in.

Coursera or Udemy?

When comparing Coursera and Udemy, 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 Udemy.

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 Udemy 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, Udemy 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 -16.63 and Udemy's P/E ratio at -12.38. 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 2.19 while Udemy's P/B ratio is 6.04.

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 Udemy's is 1.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coursera's ROE at -13.03% and Udemy's ROE at -34.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.79 for Coursera and $7.83 for Udemy. Over the past year, Coursera's prices ranged from $6.29 to $20.77, with a yearly change of 230.21%. Udemy's prices fluctuated between $6.67 and $15.94, with a yearly change of 138.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.