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CHGG vs COST

CHGG
Chegg, Inc.
BEARISH
Price
$1.03
Market Cap
$115.2M
Sector
Consumer Defensive
AI Confidence
95%
COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
CHGG
--
COST
51.82
Forward P/E
CHGG
-4.86
COST
44.4
P/B Ratio
CHGG
0.96
COST
13.78
P/S Ratio
CHGG
0.31
COST
1.55
EV/EBITDA
CHGG
2.67
COST
32.11

Profitability

Gross Margin
CHGG
64.49%
COST
12.93%
Operating Margin
CHGG
-2.6%
COST
3.74%
Profit Margin
CHGG
-27.44%
COST
2.99%
ROE
CHGG
-66.17%
COST
29.65%
ROA
CHGG
-3.85%
COST
8.72%

Growth

Revenue Growth
CHGG
-49.4%
COST
9.2%
Earnings Growth
CHGG
--
COST
13.9%

Financial Health

Debt/Equity
CHGG
0.61
COST
0.26
Current Ratio
CHGG
0.86
COST
1.06
Quick Ratio
CHGG
0.64
COST
0.54

Dividends

Dividend Yield
CHGG
--
COST
0.52%
Payout Ratio
CHGG
0.0%
COST
27.04%

AI Verdict

CHGG BEARISH

Chegg is in a state of severe financial distress, evidenced by a critical Piotroski F-Score of 2/9 and a catastrophic YoY revenue decline of 49.40%. While the stock trades at a low Price/Sales ratio (0.31) and near book value (P/B 0.96), these valuation metrics are deceptive given the rapid erosion of the core business model. Liquidity is tightening with a current ratio of 0.86, and the company has transitioned from a consistent earnings-beater to a loss-making entity. The technical trend is fully bearish, and the fundamental decay outweighs any speculative analyst price targets.

Strengths
Low Price-to-Sales ratio (0.31) suggests deep value if the business stabilizes
Trading near book value (P/B 0.96)
Gross margins remain relatively high at 64.49%
Risks
Catastrophic revenue collapse (-49.40% YoY)
Severe liquidity risk with a current ratio of 0.86 and quick ratio of 0.64
Negative profitability with a profit margin of -27.44%
COST NEUTRAL

COST shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Low debt with D/E ratio of 0.26
Strong ROE of 29.7%
Risks
High valuation with P/E of 51.8
Premium vs Graham Number ($176.89)
Low profit margin of 3.0%

Compare Another Pair

CHGG vs COST: Head-to-Head Comparison

This page compares Chegg, Inc. (CHGG) and Costco Wholesale Corporation (COST) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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