Chegg (NYSE:CHGG) and Classover (NASDAQ:KIDZ) Critical Survey

Chegg (NYSE:CHGG) and Classover (NASDAQ:KIDZ) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Chegg and Classover, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chegg	1	2	0	0	1.67
Classover	1	0	0	0	1.00

Risk and Volatility

Chegg has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500. Comparatively, Classover has a beta of -0.71, meaning that its stock price is 171% less volatile than the S&P 500.

Insider and Institutional Ownership

95.2% of Chegg shares are owned by institutional investors. Comparatively, 74.7% of Classover shares are owned by institutional investors. 3.0% of Chegg shares are owned by company insiders. Comparatively, 0.1% of Classover shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Chegg and Classover’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chegg	-19.96%	-13.38%	-6.00%
Classover	-338.62%	-167.79%	-59.29%

Earnings and Valuation

This table compares Chegg and Classover”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chegg	$376.91 million	0.21	-$103.42 million	($0.49)	-1.48
Classover	$2.83 million	0.80	-$7.05 million	$99.95	0.03

Classover has lower revenue, but higher earnings than Chegg. Chegg is trading at a lower price-to-earnings ratio than Classover, indicating that it is currently the more affordable of the two stocks.

Summary

Chegg beats Classover on 8 of the 12 factors compared between the two stocks.

About Chegg

Chegg, Inc. operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity, as well as competencies consisting of emotional intelligence, mindset, emerging leadership, and decision making. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.

About Classover

Classover is an online enrichment program in Manhattan, New York that offers over 20 courses taught by certified instructors. It caters to children aged 4 to 17, providing personalized attention and a supportive learning environment. Classover is recognized worldwide by over 20,000 parents and children in more than 34 countries. Classover’s proprietary course platform app provides exclusive benefits to students, including access to class schedules, remaining class credits, and class history. As an official test center for the Math Kangaroo Competition and other high-value competition channels, Classover is certified to provide high-quality teaching services to help students improve their academic performance. The school’s WASC certification is a testament to its teaching quality, meeting high standards in student satisfaction, teacher qualifications, classroom environment, and course content quality. Classover limits class size to six students to ensure personalized attention, delivering over 330,000 hours of online classes with a course renewal rate exceeding 90%. The platform has helped students win competition awards, making it a recognized “The Best Parenting Tool” in the parent community.