Nerdy (NRDY) versus Its Rivals Financial Analysis

Nerdy (NYSE:NRDY) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its rivals? We will compare Nerdy to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

39.1% of Nerdy shares are held by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 51.0% of Nerdy shares are held by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Nerdy has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Nerdy’s rivals have a beta of 0.50, meaning that their average share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Nerdy and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	1	0	0	0	1.00
Nerdy Competitors	1445	3450	5292	197	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 63.23%. Given Nerdy’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Nerdy has less favorable growth aspects than its rivals.

Profitability

This table compares Nerdy and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nerdy	-16.99%	-100.13%	-42.59%
Nerdy Competitors	-3.89%	-28.69%	2.36%

Earnings and Valuation

This table compares Nerdy and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nerdy	$178.99 million	-$39.92 million	-1.63
Nerdy Competitors	$3.24 billion	$219.82 million	11.80

Nerdy’s rivals have higher revenue and earnings than Nerdy. Nerdy is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Nerdy rivals beat Nerdy on 11 of the 13 factors compared.

Nerdy Company Profile

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.