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 $82.2M against $55.7M — 1.5× the size. Skillsoft Corp. grew revenue faster over the last twelve months: 7.17% against −47.6%. Chegg, Inc. has the higher net margin (−20.0% vs −32.4%) and the lower return on invested capital (−75.1% 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 11.19
P/S 0.31 0.11 0.92
P/B 0.69 n/m 1.63
Price to free cash flow n/m 6.78 9.62
EV/EBITDA 38.94 4.81 7.02
EV/Sales 0.27 1.06 0.82
Earnings yield (66.85%) (311.43%) 3.17%
Free cash flow yield (8.56%) 14.76% 2.30%

Profitability

Metric CHGG SKIL Education & Training Services median
Gross margin 57.95% 73.62% 54.64%
Operating margin (20.94%) (15.25%) 0.00%
Net margin (19.96%) (32.36%) 3.29%
Free cash flow margin (2.62%) 1.56% 0.00%
Return on equity (38.34%) 643.18% 0.00%
Return on assets (16.77%) (18.83%) 0.00%
Return on invested capital (75.06%) (12.44%) 0.00%

Growth

Metric CHGG SKIL Education & Training Services median
Revenue growth (TTM) (47.59%) 7.17% 6.97%
EPS growth (last fiscal year) 88.15% (9.41%) —
Revenue growth, 5-year CAGR (10.17%) 2.45% 4.27%
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) 0.08
Current ratio 1.17 0.87 1.33
Net debt to EBITDA 1.93 6.62 (0.15)

Dividend

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

Size

Metric CHGG SKIL Education & Training Services median
Market cap 82.16m 55.69m 68.93m

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