Chegg, Inc. (CHGG) vs KinderCare Learning Companies, Inc. (KLC)

Chegg, Inc. and KinderCare Learning Companies, Inc. are both Education & Training Services companies. KinderCare Learning Companies, Inc. is the larger, with a market value of $260.7M against $82.2M — 3.2× the size. KinderCare Learning Companies, Inc. grew revenue faster over the last twelve months: 1.79% against −47.6%. KinderCare Learning Companies, Inc. has the higher net margin (−17.2% vs −20.0%) and the higher return on invested capital (−20.9% vs −75.1%). Across the 17 metrics below, KinderCare Learning Companies, Inc. leads on 9 and Chegg, Inc. on 8.

Valuation

Metric CHGG KLC Education & Training Services median
P/E n/m n/m 11.19
P/S 0.31 0.09 0.92
P/B 0.69 0.54 1.63
Price to free cash flow n/m 3.11 9.62
EV/EBITDA 38.94 n/m 7.02
EV/Sales 0.27 0.37 0.82
Earnings yield (66.85%) (187.74%) 3.17%
Free cash flow yield (8.56%) 32.21% 2.30%

Profitability

Metric CHGG KLC Education & Training Services median
Gross margin 57.95% 19.17% 54.64%
Operating margin (20.94%) (14.89%) 0.00%
Net margin (19.96%) (17.23%) 3.29%
Free cash flow margin (2.62%) 2.97% 0.00%
Return on equity (38.34%) (67.78%) 0.00%
Return on assets (16.77%) (13.10%) 0.00%
Return on invested capital (75.06%) (20.89%) 0.00%

Growth

Metric CHGG KLC Education & Training Services median
Revenue growth (TTM) (47.59%) 1.79% 6.97%
EPS growth (last fiscal year) 88.15% 1.04% —
Revenue growth, 5-year CAGR (10.17%) — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CHGG KLC Education & Training Services median
Debt to equity 0.00 1.99 0.08
Current ratio 1.17 0.75 1.33
Net debt to EBITDA 1.93 7.22 (0.15)

Dividend

Metric CHGG KLC Education & Training Services median
Dividend yield — — 1.13%
Payout ratio 0.00 — 0.00

Size

Metric CHGG KLC Education & Training Services median
Market cap 82.16m 260.74m 68.93m

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