Chegg, Inc. (CHGG) vs Skillsoft Corp. (SKIL)

Chegg, Inc. and Skillsoft Corp. are both Education & Training Services companies. Chegg, Inc. is the larger, with a market value of $66.5M against $33.0M — 2.0× the size. Skillsoft Corp. grew revenue faster over the last twelve months: −13.7% against −47.7%. Chegg, Inc. has the higher net margin (−17.2% vs −36.1%) and the lower return on invested capital (−37.8% vs −12.4%). Across the 18 metrics below, Skillsoft Corp. leads on 11 and Chegg, Inc. on 7.

Valuation

Metric CHGG SKIL Education & Training Services median
P/E n/m n/m 12.09
P/S 0.28 0.07 0.80
P/B 0.58 n/m 1.39
Price to free cash flow n/m 4.13 7.31
EV/EBITDA 7.85 4.62 6.36
EV/Sales 0.37 1.13 0.58
Earnings yield (61.70%) (510.47%) 3.29%
Free cash flow yield (0.77%) 24.19% 3.03%

Profitability

Metric CHGG SKIL Education & Training Services median
Gross margin 56.38% 82.20% 55.03%
Operating margin (18.61%) (17.03%) 0.00%
Net margin (17.17%) (36.13%) 1.77%
Free cash flow margin (0.22%) 1.74% 0.00%
Return on equity (30.74%) 643.18% 0.00%
Return on assets (14.20%) (18.83%) 0.00%
Return on invested capital (37.84%) (12.44%) 0.00%

Growth

Metric CHGG SKIL Education & Training Services median
Revenue growth (TTM) (47.68%) (13.66%) 5.84%
EPS growth (last fiscal year) 88.15% (9.41%) 14.71%
Revenue growth, 5-year CAGR (10.17%) 2.45% 4.24%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CHGG SKIL Education & Training Services median
Debt to equity 0.00 (6.15) 0.05
Current ratio 1.35 0.87 1.37
Net debt to EBITDA 1.93 6.62 (0.04)

Dividend

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

Size

Metric CHGG SKIL Education & Training Services median
Market cap 66.53m 32.95m 59.54m

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