Head-To-Head Analysis: Chegg (CHGG) vs. China Online Education Group (COE)
Chegg (NYSE:CHGG) and China Online Education Group (NYSE:COE) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Volatility & Risk
Chegg has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, China Online Education Group has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Chegg and China Online Education Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Online Education Group||0||0||0||0||N/A|
Chegg currently has a consensus price target of $23.44, indicating a potential downside of 8.06%. Given Chegg’s higher probable upside, equities research analysts plainly believe Chegg is more favorable than China Online Education Group.
Earnings & Valuation
This table compares Chegg and China Online Education Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chegg||$255.07 million||11.39||-$20.28 million||($0.09)||-283.33|
|China Online Education Group||$130.33 million||1.44||-$89.27 million||N/A||N/A|
Chegg has higher revenue and earnings than China Online Education Group.
This table compares Chegg and China Online Education Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Online Education Group||-46.85%||N/A||-59.88%|
Insider & Institutional Ownership
27.1% of China Online Education Group shares are owned by institutional investors. 10.8% of Chegg shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Chegg beats China Online Education Group on 11 of the 12 factors compared between the two stocks.
Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks. Its digital products and services include Chegg Study, which helps students master challenging concepts on their own; Chegg Writing that enables automatically generate sources in the required formats, when students need to cite their sources in written work; Chegg Tutors that allow students find human help on its learning platform through a network of live tutors; Chegg Math, an adaptive math technology and developer of the math application; Brand Partnership, which offers various ways for student-relevant brands to reach and engage high school and college students; Test Prep that provides students with an online adaptive test preparation services; and internships services. The company rents and sells print textbooks and eTextbooks; and offers supplemental materials and textbook buyback services. The company has a strategic alliance with Ingram Content Group. Chegg, Inc. was founded in 2003 and is headquartered in Santa Clara, California.
About China Online Education Group
China Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China and the Philippines. It operates online and mobile education platforms that enable students to take live interactive English lessons with international foreign teachers. The company's flagship courses include Classic English and Classic English Junior for the development of English communication skills. It also offers various specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, and Daily English for situation-based English education and test preparation needs. China Online Education Group was founded in 2011 and is headquartered in Beijing, the People's Republic of China.
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