Nerdy (NYSE:NRDY) versus New Oriental Education & Technology Group (NYSE:EDU) Head-To-Head Contrast

Nerdy (NYSE:NRDY) and New Oriental Education & Technology Group (NYSE:EDU) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

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%

Earnings and Valuation

This table compares Nerdy and New Oriental Education & Technology Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$177.87 million	1.20	-$42.58 million	($0.35)	-3.24
New Oriental Education & Technology Group	$4.90 billion	1.81	$371.72 million	$2.27	24.74

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.

Institutional and Insider Ownership

39.1% of Nerdy shares are owned by institutional investors. 50.9% of Nerdy shares are owned by insiders. Comparatively, 15.5% of New Oriental Education & Technology Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Nerdy has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, New Oriental Education & Technology Group has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Nerdy and New Oriental Education & Technology Group, as reported by MarketBeat.com.

	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 price target of $1.25, suggesting a potential upside of 10.13%. New Oriental Education & Technology Group has a consensus price target of $65.30, suggesting a potential upside of 16.25%. Given New Oriental Education & Technology Group’s stronger consensus rating and higher possible upside, analysts plainly believe New Oriental Education & Technology Group is more favorable than Nerdy.

Summary

New Oriental Education & Technology Group beats Nerdy on 11 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.