Aspen Group (NASDAQ: ASPU) and Chegg (NYSE:CHGG) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
Insider & Institutional Ownership
5.9% of Aspen Group shares are held by institutional investors. 15.3% of Aspen Group shares are held by insiders. Comparatively, 20.4% of Chegg shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Aspen Group and Chegg’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Aspen Group has a beta of -0.15, meaning that its stock price is 115% less volatile than the S&P 500. Comparatively, Chegg has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.
Valuation & Earnings
This table compares Aspen Group and Chegg’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aspen Group||$14.25 million||9.00||-$1.10 million||($0.15)||-57.67|
|Chegg||$254.09 million||7.06||-$42.24 million||($0.26)||-63.65|
Aspen Group has higher earnings, but lower revenue than Chegg. Chegg is trading at a lower price-to-earnings ratio than Aspen Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Aspen Group and Chegg, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aspen Group presently has a consensus target price of $12.25, suggesting a potential upside of 41.62%. Chegg has a consensus target price of $16.10, suggesting a potential downside of 2.72%. Given Aspen Group’s higher possible upside, analysts plainly believe Aspen Group is more favorable than Chegg.
Chegg beats Aspen Group on 8 of the 14 factors compared between the two stocks.
Aspen Group Company Profile
Aspen Group, Inc. is a holding company. The Company’s subsidiary, Aspen University Inc. (Aspen), is dedicated to provide the education experiences taught by professors. Aspen offers approximately two monthly payment programs, a monthly payment plan in which students make payments every month over a fixed period (36, 39 or 72 months depending on the degree program) and a monthly installment plan in which students pay over three monthly installments (day 1, day 31 and day 61 after the start of each course). As of June 30, 2016, Aspen had 2,074 students paying tuition through either of the monthly payment methods. It offers certificate programs and associate, bachelor’s, master’s and doctoral degree programs in a range of areas, including nursing, business, education and professional studies. It offers a range of nursing degrees, including Master of Science in Nursing, Master of Science in Nursing-Nursing Education and Master of Science in Nursing-Nursing Administration and Management.
Chegg Company Profile
Chegg, Inc. is a student-first connected learning platform. The Company helps students study for college admission exams, find the colleges, get grades and test scores while in school, and find internships that allow them to gain skills to help them enter the workforce after college. The Company matches domestic and international students with colleges, universities and other academic institutions (collectively referred to as colleges) in the United States. It also offers eTextbooks library for rent and sale. The Company also has live tutors on its connected learning platform available to students online, anytime, anywhere through its Chegg Tutors service. It provides access to internships to help students gain skills that are critical to securing their first job. It offers two product lines: Required Materials and Chegg Services. The Required Materials product line includes the rental and sale of print textbooks and eTextbooks, as well as the commission it receives from Ingram.
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