Overstock.com vs Chegg Which Outperforms?

Overstock.com and Chegg are two well-known companies in the e-commerce and education sectors, respectively. Overstock.com, founded in 1999, is an online retailer offering a wide range of products, while Chegg, established in 2005, focuses on providing educational services such as textbook rentals and online tutoring. The stocks of both companies have displayed significant fluctuations over the years, with Overstock.com experiencing challenges related to competition and market trends, while Chegg has shown promising growth potential in the rapidly evolving education technology sector. Investors interested in these stocks should carefully analyze the financial performance and market outlook of each company before making investment decisions.

Overstock.com or Chegg?

When comparing Overstock.com and Chegg, 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 Overstock.com and Chegg.

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. Overstock.com has a dividend yield of -%, while Chegg has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Overstock.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Chegg 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 Overstock.com P/E ratio at -0.83 and Chegg's P/E ratio at -0.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Overstock.com P/B ratio is 1.43 while Chegg's P/B ratio is 0.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Overstock.com has seen a 5-year revenue growth of -0.43%, while Chegg's is 1.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Overstock.com's ROE at -123.84% and Chegg's ROE at -133.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.02 for Overstock.com and $1.66 for Chegg. Over the past year, Overstock.com's prices ranged from $6.02 to $39.18, with a yearly change of 550.79%. Chegg's prices fluctuated between $1.34 and $11.48, with a yearly change of 756.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.