Frontdoor (NASDAQ:FTDR) and Chegg (NYSE:CHGG) Head-To-Head Survey

Frontdoor (NASDAQ:FTDR) and Chegg (NYSE:CHGG) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Volatility and Risk

Frontdoor has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Chegg has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500.

Insider and Institutional Ownership

95.2% of Chegg shares are held by institutional investors. 1.6% of Frontdoor shares are held by insiders. Comparatively, 3.0% of Chegg shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Frontdoor and Chegg”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	$2.09 billion	3.15	$255.00 million	$4.00	24.35
Chegg	$234.24 million	0.29	-$103.42 million	($0.37)	-1.68

Frontdoor has higher revenue and earnings than Chegg. Chegg is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Frontdoor and Chegg’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontdoor	12.96%	124.74%	15.33%
Chegg	-17.17%	-16.11%	-8.16%

Analyst Ratings

This is a breakdown of recent ratings for Frontdoor and Chegg, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	0	2	5	0	2.71
Chegg	1	2	0	0	1.67

Frontdoor presently has a consensus price target of $99.80, suggesting a potential upside of 2.47%. Given Frontdoor’s stronger consensus rating and higher probable upside, equities analysts plainly believe Frontdoor is more favorable than Chegg.

Summary

Frontdoor beats Chegg on 11 of the 14 factors compared between the two stocks.

About Frontdoor

Frontdoor, Inc. provides home service plans and repair solutions in the United States. Its plans help homeowners manage the cost of repairing or replacing covered home systems and appliances, such as heating and cooling equipment, plumbing, and kitchen appliances. The company serves customers through brands including American Home Shield, HSA Home Warranty, and OneGuard Home Warranties. It also connects customers with a network of independent service contractors and offers digital tools and support to help arrange home repairs.

About Chegg

Chegg, Inc. is an education technology company that provides digital learning tools and academic support services to students. Its platform offers study assistance, expert answers, practice materials, writing support, and other resources intended to help students understand course content and complete academic work. The company’s products have included Chegg Study, Chegg Writing, and Mathway, a mobile mathematics problem-solving service. Chegg has also offered language-learning services through Busuu, which it acquired in 2022.