Critical Comparison: Mynd.ai (OTCMKTS:MYND) & Chegg (NYSE:CHGG)

Mynd.ai (OTCMKTS:MYND) and Chegg (NYSE:CHGG) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mynd.ai and Chegg, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mynd.ai	0	0	0	0	0.00
Chegg	3	7	0	0	1.70

Chegg has a consensus price target of $4.69, suggesting a potential upside of 197.12%. Given Chegg’s stronger consensus rating and higher probable upside, analysts clearly believe Chegg is more favorable than Mynd.ai.

Valuation & Earnings

This table compares Mynd.ai and Chegg”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mynd.ai	$357.05 million	0.28	-$37.86 million	N/A	N/A
Chegg	$662.08 million	0.25	$18.18 million	($7.98)	-0.20

Chegg has higher revenue and earnings than Mynd.ai.

Insider and Institutional Ownership

64.6% of Mynd.ai shares are held by institutional investors. Comparatively, 95.2% of Chegg shares are held by institutional investors. 36.9% of Mynd.ai shares are held by company insiders. Comparatively, 3.4% of Chegg shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mynd.ai	N/A	N/A	N/A
Chegg	-124.05%	2.36%	1.04%

Risk & Volatility

Mynd.ai has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Chegg has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Summary

Chegg beats Mynd.ai on 8 of the 11 factors compared between the two stocks.

About Mynd.ai

Mynd.ai, Inc. operates in interactive technology offering hardware and software solutions. The company's solutions help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Its interactive displays and software are available in approximately 1 million learning and training spaces across 126 countries. The company's distribution network of approximately 4,000 reseller partners and its dedicated sales and support teams worldwide enable to deliver the service to its customers. The company was formerly known as Gravitas Education Holdings, Inc. and changed its name to Mynd.ai, Inc. in December 2023. Mynd.ai, Inc. was founded in 1998 and is based in Beijing, China.

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.