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NEW YORK (TheStreet) --With students across the country poised to return to school starting this week, Chegg (CHGG) CEO Dan Rosensweig joined Wednesday morning's "Squawk Box" to discuss the business of textbooks.

"For the textbook part of our business, this is the biggest week. We will set a record for the number of textbooks rented, e-textbooks, and physical textbooks; its 25% of the business," Rosensweig said.

Moreover, Rosensweig noted that 80% of the entire textbook business of Chegg will be complete by the end of next week.

Rosensweig then commented on the fundamental differences between e-textbooks and physical textbooks.

"A very small percentage is e-text books; college kids hate them. Physical textbooks are cheaper to rent, textbooks are also portable and they never run out of battery. It's all about finances for college students," Rosenwieg explained

Rosensweig concluded by commenting on the high prices for textbooks college students now face and why another company just doesn't enter the marketplace, reduce cost and thus undercut the primary publishers.

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"That's what we did. We invented the textbook rental model. If you look at the last 20 years, five publishers have about 80% market share in the U.S. colleges. But, to have a college professor, who is under no pressure to change anything because of tenure, why would they do it?" Rosensweig said.

The biggest hurdle for a company such as Chegg remains those professors and having to sell them on why they should be using a book from Chegg vs. a book they have been implementing into their syllabi for years.

Separately, TheStreet Ratings rates Chegg as a "Hold" with a ratings score of "C." The primary factors that have impacted TheStreet Ratings rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, TheStreet Ratings finds that the stock has had a generally disappointing performance in the past year.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: CHGG

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