Wah Fu Education Group (NASDAQ:WAFU) and Chegg (NYSE:CHGG) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Profitability

This table compares Wah Fu Education Group and Chegg’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wah Fu Education Group N/A N/A N/A
Chegg -4.07% 7.12% 2.83%

Valuation and Earnings

This table compares Wah Fu Education Group and Chegg’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wah Fu Education Group N/A N/A N/A N/A N/A
Chegg $321.08 million 12.06 -$14.89 million $0.09 359.67

Wah Fu Education Group has higher earnings, but lower revenue than Chegg.

Analyst Recommendations

This is a summary of recent recommendations for Wah Fu Education Group and Chegg, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wah Fu Education Group 0 0 0 0 N/A
Chegg 0 3 10 0 2.77

Chegg has a consensus price target of $43.25, suggesting a potential upside of 33.61%. Given Chegg’s higher probable upside, analysts plainly believe Chegg is more favorable than Wah Fu Education Group.

Insider & Institutional Ownership

0.1% of Wah Fu Education Group shares are owned by institutional investors. 5.8% of Chegg shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Chegg beats Wah Fu Education Group on 6 of the 8 factors compared between the two stocks.

Wah Fu Education Group Company Profile

Wah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in China. It operates in two segments, Online Education Services; and Technological Development and Operation Services. The Online Education Services segment offers online education platforms to institutions, such as universities and training institutions, and online course development service companies. This segment provides self-study examination, continuing education, and non-diploma training platforms that allow students to enroll in courses for college credit; and online training and examination preparation services directly to students. The Technological Development and Operation Services segment develops and maintains online education platforms and online courses for its clients, including universities and government agencies, as well as private clients, such as publishers and education service companies; and provides consulting, maintenance, and updating services related to online education programs. The company was founded in 1999 and is headquartered in Beijing, China.

Chegg Company Profile

Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks. Its digital products and services include Chegg Study, which helps students master challenging concepts on their own; Chegg Writing that enables automatically generate sources in the required formats, when students need to cite their sources in written work; Chegg Tutors that allow students find human help on its learning platform through a network of live tutors; and Chegg Math solver, which helps students to get math help through self-guided and individualized math solutions The company also offers Other Services, such as Test Prep, internships, college admission and scholarship services; rents and sells print textbooks and eTextbooks; and offers supplemental materials and textbook buyback services. Chegg, Inc. was founded in 2003 and is headquartered in Santa Clara, California.

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