CHGG
Chegg, Inc.
Education & Training Services
Market Cap$143M
5Y Perf.-97.9%
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Stock Comparison
CHGG vs STRA
Revenue, margins, valuation, and 5-year total return — side by side.
STRA
Strategic Education, Inc.
Education & Training Services
Market Cap$1.80B
5Y Perf.-53.4%
CHGG vs STRA — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CHGG | STRA |
|---|---|---|
| Industry | Education & Training Services | Education & Training Services |
| Market Cap | $143M | $1.80B |
| Revenue (TTM) | $319M | $1.27B |
| Net Income (TTM) | $-86M | $130M |
| Gross Margin | 61.9% | 37.4% |
| Operating Margin | -11.1% | 14.0% |
| Forward P/E | — | 11.0x |
| Total Debt | $84M | $109M |
| Cash & Equiv. | $31M | $141M |
CHGG vs STRA — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
CHGG
STRA
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Chegg, Inc. (CHGG) | 100 | 2.1 | -97.9% |
| Strategic Education… (STRA) | 100 | 46.6 | -53.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CHGG vs STRA
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: STRA leads in 5 of 6 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Chegg, Inc. is the stronger pick specifically for recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
CHGG
Chegg, Inc.
The Income Pick
CHGG is the clearest fit if your priority is income & stability.
- Dividend streak 1 yrs, beta 2.97
- +79.3% vs STRA's -7.8%
Best for: income & stability
STRA
Strategic Education, Inc.
The Growth Play
STRA carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 4.0%, EPS growth 16.1%, 3Y rev CAGR 6.0%
- 114.9% 10Y total return vs CHGG's -70.8%
- Lower volatility, beta 0.48, Low D/E 6.6%, current ratio 1.27x
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | STRA | 4.0% revenue growth vs CHGG's -39.0% |
| Quality / Margins | STRA | 10.2% margin vs CHGG's -26.9% |
| Stability / Safety | STRA | Beta 0.48 vs CHGG's 2.97, lower leverage |
| Dividends | STRA | 3.2% yield; 1-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | CHGG | +79.3% vs STRA's -7.8% |
| Efficiency (ROA) | STRA | 6.2% ROA vs CHGG's -26.3%, ROIC 9.0% vs -13.4% |
CHGG vs STRA — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
CHGG vs STRA — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLSTRALAGGINGCHGG
CHGGChegg, Inc.
0leads
STRAStrategic Education, …
4leads
6 Total Categories
CATEGORYLEADERvs CHGGMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
STRA4/6
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
STRA7/8
Total Returns1Y, 3Y, 5Y total returns with dividends
STRA4/6
Risk & VolatilityBeta, volatility, and downside exposure
STRA2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
STRA leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
STRA is the larger business by revenue, generating $1.3B annually — 4.0x CHGG's $319M. STRA is the more profitable business, keeping 10.2% of every revenue dollar as net income compared to CHGG's -26.9%. On growth, STRA holds the edge at +0.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CHGGChegg, Inc. | STRAStrategic Educati… |
|---|---|---|
| RevenueTrailing 12 months | $319M | $1.3B |
| EBITDAEarnings before interest/tax | $11M | $216M |
| Net IncomeAfter-tax profit | -$86M | $130M |
| Free Cash FlowCash after capex | -$25M | $174M |
| Gross MarginGross profit ÷ Revenue | +61.9% | +37.4% |
| Operating MarginEBIT ÷ Revenue | -11.1% | +14.0% |
| Net MarginNet income ÷ Revenue | -26.9% | +10.2% |
| FCF MarginFCF ÷ Revenue | -8.0% | +13.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -47.9% | +0.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +101.2% | +19.4% |
STRA leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
Evenly matched — CHGG and STRA each lead in 2 of 4 comparable metrics.
Valuation Metrics
On an enterprise value basis, STRA's 7.2x EV/EBITDA is more attractive than CHGG's 12.8x.
| Metric | CHGGChegg, Inc. | STRAStrategic Educati… |
|---|---|---|
| Market CapShares × price | $143M | $1.8B |
| Enterprise ValueMkt cap + debt − cash | $196M | $1.8B |
| Trailing P/EPrice ÷ TTM EPS | -1.33x | 14.59x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 11.01x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.94x |
| EV / EBITDAEnterprise value multiple | 12.82x | 7.22x |
| Price / SalesMarket cap ÷ Revenue | 0.38x | 1.42x |
| Price / BookPrice ÷ Book value/share | 1.15x | 1.10x |
| Price / FCFMarket cap ÷ FCF | — | 11.68x |
Evenly matched — CHGG and STRA each lead in 2 of 4 comparable metrics.
Profitability & Efficiency
STRA leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
STRA delivers a 7.9% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $-63 for CHGG. STRA carries lower financial leverage with a 0.07x debt-to-equity ratio, signaling a more conservative balance sheet compared to CHGG's 0.70x. On the Piotroski fundamental quality scale (0–9), STRA scores 8/9 vs CHGG's 6/9, reflecting strong financial health.
| Metric | CHGGChegg, Inc. | STRAStrategic Educati… |
|---|---|---|
| ROE (TTM)Return on equity | -62.9% | +7.9% |
| ROA (TTM)Return on assets | -26.3% | +6.2% |
| ROICReturn on invested capital | -13.4% | +9.0% |
| ROCEReturn on capital employed | -26.5% | +10.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 0.70x | 0.07x |
| Net DebtTotal debt minus cash | $53M | -$32M |
| Cash & Equiv.Liquid assets | $31M | $141M |
| Total DebtShort + long-term debt | $84M | $109M |
| Interest CoverageEBIT ÷ Interest expense | -525.53x | — |
STRA leads this category, winning 7 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
STRA leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in STRA five years ago would be worth $11,782 today (with dividends reinvested), compared to $150 for CHGG. Over the past 12 months, CHGG leads with a +79.3% total return vs STRA's -7.8%. The 3-year compound annual growth rate (CAGR) favors STRA at 1.3% vs CHGG's -49.8% — a key indicator of consistent wealth creation.
| Metric | CHGGChegg, Inc. | STRAStrategic Educati… |
|---|---|---|
| YTD ReturnYear-to-date | +30.6% | +1.4% |
| 1-Year ReturnPast 12 months | +79.3% | -7.8% |
| 3-Year ReturnCumulative with dividends | -87.3% | +3.8% |
| 5-Year ReturnCumulative with dividends | -98.5% | +17.8% |
| 10-Year ReturnCumulative with dividends | -70.8% | +114.9% |
| CAGR (3Y)Annualised 3-year return | -49.8% | +1.3% |
STRA leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
STRA leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
STRA is the less volatile stock with a 0.48 beta — it tends to amplify market swings less than CHGG's 2.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. STRA currently trades 84.6% from its 52-week high vs CHGG's 67.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CHGGChegg, Inc. | STRAStrategic Educati… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.97x | 0.48x |
| 52-Week HighHighest price in past year | $1.90 | $93.45 |
| 52-Week LowLowest price in past year | $0.53 | $69.70 |
| % of 52W HighCurrent price vs 52-week peak | +67.4% | +84.6% |
| RSI (14)Momentum oscillator 0–100 | 63.3 | 47.3 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 315K |
STRA leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates CHGG as "Hold" and STRA as "Buy". Consensus price targets imply 2276.6% upside for CHGG (target: $30) vs 10.0% for STRA (target: $87). STRA is the only dividend payer here at 3.19% yield — a key consideration for income-focused portfolios.
| Metric | CHGGChegg, Inc. | STRAStrategic Educati… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $30.42 | $87.00 |
| # AnalystsCovering analysts | 22 | 18 |
| Dividend YieldAnnual dividend ÷ price | — | +3.2% |
| Dividend StreakConsecutive years of raises | 1 | 1 |
| Dividend / ShareAnnual DPS | — | $2.52 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +7.7% |
Insufficient data to determine a leader in this category.
Key Takeaway
STRA leads in 4 of 6 categories — strongest in Income & Cash Flow and Profitability & Efficiency. 1 category is tied.
Best OverallStrategic Education, Inc. (STRA)Leads 4 of 6 categories
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CHGG vs STRA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CHGG or STRA a better buy right now?
For growth investors, Strategic Education, Inc.
(STRA) is the stronger pick with 4. 0% revenue growth year-over-year, versus -39. 0% for Chegg, Inc. (CHGG). Strategic Education, Inc. (STRA) offers the better valuation at 14. 6x trailing P/E (11. 0x forward), making it the more compelling value choice. Analysts rate Strategic Education, Inc. (STRA) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — CHGG or STRA?
Over the past 5 years, Strategic Education, Inc.
(STRA) delivered a total return of +17. 8%, compared to -98. 5% for Chegg, Inc. (CHGG). Over 10 years, the gap is even starker: STRA returned +114. 9% versus CHGG's -70. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — CHGG or STRA?
By beta (market sensitivity over 5 years), Strategic Education, Inc.
(STRA) is the lower-risk stock at 0. 48β versus Chegg, Inc. 's 2. 97β — meaning CHGG is approximately 513% more volatile than STRA relative to the S&P 500. On balance sheet safety, Strategic Education, Inc. (STRA) carries a lower debt/equity ratio of 7% versus 70% for Chegg, Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — CHGG or STRA?
By revenue growth (latest reported year), Strategic Education, Inc.
(STRA) is pulling ahead at 4. 0% versus -39. 0% for Chegg, Inc. (CHGG). On earnings-per-share growth, the picture is similar: Chegg, Inc. grew EPS 88. 1% year-over-year, compared to 16. 1% for Strategic Education, Inc.. Over a 3-year CAGR, STRA leads at 6. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — CHGG or STRA?
Strategic Education, Inc.
(STRA) is the more profitable company, earning 10. 0% net margin versus -27. 4% for Chegg, Inc. — meaning it keeps 10. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STRA leads at 15. 5% versus -16. 8% for CHGG. At the gross margin level — before operating expenses — CHGG leads at 60. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CHGG or STRA more undervalued right now?
Analyst consensus price targets imply the most upside for CHGG: 2276.
6% to $30. 42.
07Which pays a better dividend — CHGG or STRA?
In this comparison, STRA (3.
2% yield) pays a dividend. CHGG does not pay a meaningful dividend and should not be held primarily for income.
08Is CHGG or STRA better for a retirement portfolio?
For long-horizon retirement investors, Strategic Education, Inc.
(STRA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 48), 3. 2% yield, +114. 9% 10Y return). Chegg, Inc. (CHGG) carries a higher beta of 2. 97 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (STRA: +114. 9%, CHGG: -70. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CHGG and STRA?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: CHGG is a small-cap quality compounder stock; STRA is a small-cap deep-value stock. STRA pays a dividend while CHGG does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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