ATA Inc. (AACG) vs Chegg, Inc. (CHGG)

ATA Inc. and Chegg, Inc. are both Education & Training Services companies. Chegg, Inc. is the larger, with a market value of $66.5M against $27.0M — 2.5× the size. ATA Inc. grew revenue faster over the last twelve months: 4.40% against −47.7%. Chegg, Inc. has the higher net margin (−17.2% vs −17.9%) and the lower return on invested capital (−37.8% vs 0.00%). Across the 18 metrics below, Chegg, Inc. leads on 11 and ATA Inc. on 7.

Valuation

Metric AACG CHGG Education & Training Services median
P/E n/m n/m 12.09
P/S 0.52 0.28 0.80
P/B 4.37 0.58 1.39
Price to free cash flow n/m n/m 7.31
EV/EBITDA n/m 7.85 6.36
EV/Sales 0.32 0.37 0.58
Earnings yield (31.75%) (61.70%) 3.29%
Free cash flow yield (23.61%) (0.77%) 3.03%

Profitability

Metric AACG CHGG Education & Training Services median
Gross margin 48.60% 56.38% 55.03%
Operating margin (23.91%) (18.61%) 0.00%
Net margin (17.92%) (17.17%) 1.77%
Free cash flow margin (12.30%) (0.22%) 0.00%
Return on equity (88.74%) (30.74%) 0.00%
Return on assets (11.36%) (14.20%) 0.00%
Return on invested capital 0.00% (37.84%) 0.00%

Growth

Metric AACG CHGG Education & Training Services median
Revenue growth (TTM) 4.40% (47.68%) 5.84%
EPS growth (last fiscal year) (37.50%) 88.15% 14.71%
Revenue growth, 5-year CAGR 9.06% (10.17%) 4.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AACG CHGG Education & Training Services median
Debt to equity 0.96 0.00 0.05
Current ratio 0.32 1.35 1.37
Net debt to EBITDA 1.28 1.93 (0.04)

Dividend

Metric AACG CHGG Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric AACG CHGG Education & Training Services median
Market cap 26.96m 66.53m 59.54m

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