Chegg (NYSE:CHGG – Get Free Report) and OneSpaWorld (NASDAQ:OSW – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Chegg and OneSpaWorld, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chegg | 1 | 2 | 0 | 0 | 1.67 |
| OneSpaWorld | 0 | 1 | 5 | 0 | 2.83 |
OneSpaWorld has a consensus target price of $34.00, suggesting a potential upside of 11.84%. Given OneSpaWorld’s stronger consensus rating and higher possible upside, analysts clearly believe OneSpaWorld is more favorable than Chegg.
Profitability
This table compares Chegg and OneSpaWorld’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chegg | -19.96% | -13.38% | -6.00% |
| OneSpaWorld | 8.26% | 18.93% | 14.90% |
Insider and Institutional Ownership
95.2% of Chegg shares are owned by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are owned by institutional investors. 3.0% of Chegg shares are owned by company insiders. Comparatively, 3.6% of OneSpaWorld shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Chegg and OneSpaWorld”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chegg | $376.91 million | 0.21 | -$103.42 million | ($0.49) | -1.43 |
| OneSpaWorld | $961.00 million | 3.21 | $71.62 million | $0.84 | 36.19 |
OneSpaWorld has higher revenue and earnings than Chegg. Chegg is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Chegg has a beta of 2.26, indicating that its share price is 126% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
Summary
OneSpaWorld beats Chegg on 13 of the 14 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 OneSpaWorld
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.
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