Nerdy (NYSE:NRDY – Get Free Report) and New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.
Analyst Recommendations
This is a summary of current ratings and price targets for Nerdy and New Oriental Education & Technology Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nerdy | 1 | 2 | 0 | 0 | 1.67 |
| New Oriental Education & Technology Group | 0 | 6 | 3 | 0 | 2.33 |
Nerdy presently has a consensus target price of $1.25, indicating a potential upside of 19.62%. New Oriental Education & Technology Group has a consensus target price of $65.30, indicating a potential upside of 17.19%. Given Nerdy’s higher probable upside, equities research analysts plainly believe Nerdy is more favorable than New Oriental Education & Technology Group.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nerdy | $190.23 million | 1.03 | -$42.58 million | ($0.35) | -2.99 |
| New Oriental Education & Technology Group | $4.90 billion | 1.80 | $371.72 million | $2.27 | 24.55 |
New Oriental Education & Technology Group has higher revenue and earnings than Nerdy. Nerdy is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
39.1% of Nerdy shares are owned by institutional investors. 50.9% of Nerdy shares are owned by company insiders. Comparatively, 15.5% of New Oriental Education & Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Nerdy has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, New Oriental Education & Technology Group has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
Profitability
This table compares Nerdy and New Oriental Education & Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nerdy | -22.95% | -81.74% | -51.09% |
| New Oriental Education & Technology Group | 7.36% | 10.77% | 5.64% |
Summary
New Oriental Education & Technology Group beats Nerdy on 10 of the 14 factors compared between the two stocks.
About Nerdy
Nerdy, Inc. operates platform for live online learning. The company's purpose-built proprietary platform leverages technology, including artificial intelligence to connect students, users, parents, guardians, and purchasers of various ages to tutors, instructors, subject matter experts, educators, and other professionals, delivering value on both sides of the network. Its learning destination provides learning experiences across various subjects and multiple formats, including one-on-one instruction, small group tutoring, large format classes, tutor chat, essay review, adaptive assessment, and self-study tools. The company's flagship business, Varsity Tutors, operates platforms for live online tutoring and classes. Its solutions are available directly to learners, as well as through education systems. The company was founded in 2007 and is headquartered in Saint Louis, Missouri.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group, Inc. is a holding company, which engages in the provision of private educational services. It operates through the following segments: Educational Services and Test Preparation Courses, Private Label Products and Livestreaming E-Commerce, Overseas Study Consulting Services, and Educational Materials and Distribution. The company was founded by Min Hong Yu and Yong Qiang Qian on November 16, 1993, and is headquartered in Beijing, China.
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