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Chegg, Inc. (CHGG) vs Legacy Education Inc. (LGCY)

Chegg, Inc. and Legacy Education Inc. are both Education & Training Services companies. Legacy Education Inc. is the larger, with a market value of $132.6M against $84.4M — 1.6× the size. Chegg, Inc. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 14.0×. Legacy Education Inc. grew revenue faster over the last twelve months: 24.8% against −47.6%. Legacy Education Inc. has the higher net margin (11.4% vs −20.0%) and the higher return on invested capital (24.4% vs −75.1%). Across the 18 metrics below, Legacy Education Inc. leads on 12 and Chegg, Inc. on 6.

Valuation

Metric CHGG LGCY Education & Training Services median
P/E n/m 14.04 13.22
P/S 0.31 1.61 0.99
P/B 0.69 2.45 1.62
Price to free cash flow n/m 48.17 10.06
EV/EBITDA 38.94 8.56 8.56
EV/Sales 0.27 1.33 0.78
Earnings yield (66.85%) 7.12% 3.17%
Free cash flow yield (8.56%) 2.08% 2.81%

Profitability

Metric CHGG LGCY Education & Training Services median
Gross margin 57.95% 46.39% 54.64%
Operating margin (20.94%) 14.75% 0.00%
Net margin (19.96%) 11.42% 2.98%
Free cash flow margin (2.62%) 3.35% 0.00%
Return on equity (38.34%) 19.49% 0.00%
Return on assets (16.77%) 12.37% 0.00%
Return on invested capital (75.06%) 24.41% 0.00%

Growth

Metric CHGG LGCY Education & Training Services median
Revenue growth (TTM) (47.59%) 24.76% 6.97%
EPS growth (last fiscal year) 88.15% 11.86% 15.68%
Revenue growth, 5-year CAGR (10.17%) — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CHGG LGCY Education & Training Services median
Debt to equity 0.00 0.00 0.05
Current ratio 1.17 3.70 1.33
Net debt to EBITDA 1.93 (1.81) (0.15)

Dividend

Metric CHGG LGCY Education & Training Services median
Dividend yield — — 1.84%
Payout ratio — — 0.23

Size

Metric CHGG LGCY Education & Training Services median
Market cap 84.35m 132.62m 68.84m

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