CHGG vs. UDMY, UTI, DAO, LINC, APEI, NRDY, VTRU, VSTA, QSG, and STG
Should you be buying Chegg stock or one of its competitors? The main competitors of Chegg include Udemy (UDMY), Universal Technical Institute (UTI), Youdao (DAO), Lincoln Educational Services (LINC), American Public Education (APEI), Nerdy (NRDY), Vitru (VTRU), Vasta Platform (VSTA), QuantaSing Group (QSG), and Sunlands Technology Group (STG). These companies are all part of the "educational services" industry.
Udemy (NASDAQ:UDMY) and Chegg (NYSE:CHGG) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, media sentiment, risk, analyst recommendations, profitability, institutional ownership and community ranking.
In the previous week, Udemy had 14 more articles in the media than Chegg. MarketBeat recorded 15 mentions for Udemy and 1 mentions for Chegg. Chegg's average media sentiment score of 0.77 beat Udemy's score of -1.00 indicating that Udemy is being referred to more favorably in the media.
79.5% of Udemy shares are owned by institutional investors. Comparatively, 95.2% of Chegg shares are owned by institutional investors. 3.2% of Udemy shares are owned by insiders. Comparatively, 3.4% of Chegg shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Udemy currently has a consensus target price of $13.90, suggesting a potential upside of 51.42%. Chegg has a consensus target price of $7.31, suggesting a potential upside of 101.72%. Given Udemy's higher possible upside, analysts plainly believe Chegg is more favorable than Udemy.
Chegg has a net margin of 2.07% compared to Chegg's net margin of -10.82%. Udemy's return on equity of 0.87% beat Chegg's return on equity.
Chegg received 758 more outperform votes than Udemy when rated by MarketBeat users. Likewise, 67.72% of users gave Chegg an outperform vote while only 48.68% of users gave Udemy an outperform vote.
Udemy has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500. Comparatively, Chegg has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
Chegg has lower revenue, but higher earnings than Udemy. Chegg is trading at a lower price-to-earnings ratio than Udemy, indicating that it is currently the more affordable of the two stocks.
Summary
Chegg beats Udemy on 10 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CHGG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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