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 $237.0M against $66.5M — 3.6× the size. KinderCare Learning Companies, Inc. grew revenue faster over the last twelve months: 1.79% against −47.7%. Chegg, Inc. has the higher net margin (−17.2% vs −17.2%) and the lower return on invested capital (−37.8% vs −20.9%). 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 12.09
P/S 0.28 0.09 0.80
P/B 0.58 0.51 1.39
Price to free cash flow n/m 2.93 7.31
EV/EBITDA 7.85 n/m 6.36
EV/Sales 0.37 0.36 0.58
Earnings yield (61.70%) (199.00%) 3.29%
Free cash flow yield (0.77%) 34.14% 3.03%

Profitability

Metric CHGG KLC Education & Training Services median
Gross margin 56.38% 19.17% 55.03%
Operating margin (18.61%) (14.89%) 0.00%
Net margin (17.17%) (17.23%) 1.77%
Free cash flow margin (0.22%) 2.97% 0.00%
Return on equity (30.74%) (67.78%) 0.00%
Return on assets (14.20%) (13.10%) 0.00%
Return on invested capital (37.84%) (20.89%) 0.00%

Growth

Metric CHGG KLC Education & Training Services median
Revenue growth (TTM) (47.68%) 1.79% 5.84%
EPS growth (last fiscal year) 88.15% 1.04% 14.71%
Revenue growth, 5-year CAGR (10.17%) — 4.24%
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 0.05
Current ratio 1.35 0.75 1.37
Net debt to EBITDA 1.93 7.22 (0.04)

Dividend

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

Size

Metric CHGG KLC Education & Training Services median
Market cap 66.53m 237.04m 59.54m

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