Chegg (NYSE:CHGG – Get Free Report) and Block (NYSE:XYZ – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Risk and Volatility
Chegg has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Block has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500.
Insider and Institutional Ownership
95.2% of Chegg shares are held by institutional investors. Comparatively, 70.4% of Block shares are held by institutional investors. 3.7% of Chegg shares are held by company insiders. Comparatively, 10.5% of Block shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chegg | $617.57 million | 0.16 | -$837.07 million | ($0.72) | -1.23 |
| Block | $23.97 billion | 1.56 | $2.90 billion | $4.96 | 12.41 |
Block has higher revenue and earnings than Chegg. Chegg is trading at a lower price-to-earnings ratio than Block, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Chegg and Block, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chegg | 4 | 1 | 0 | 1 | 1.67 |
| Block | 1 | 12 | 21 | 3 | 2.70 |
Chegg presently has a consensus price target of $1.13, suggesting a potential upside of 26.69%. Block has a consensus price target of $83.42, suggesting a potential upside of 35.51%. Given Block’s stronger consensus rating and higher possible upside, analysts clearly believe Block is more favorable than Chegg.
Profitability
This table compares Chegg and Block’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chegg | -17.14% | -9.41% | -3.07% |
| Block | 12.99% | 5.54% | 3.24% |
Summary
Block beats Chegg on 14 of the 15 factors compared between the two stocks.
About Chegg
Chegg, Inc. operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity, as well as competencies consisting of emotional intelligence, mindset, emerging leadership, and decision making. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.
About Block
Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.
Receive News & Ratings for Chegg Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chegg and related companies with MarketBeat.com's FREE daily email newsletter.
