Financial Review: Nerdy (NRDY) & Its Competitors

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

Profitability

This table compares Nerdy and its peers’ 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%

Insider and Institutional Ownership

39.1% of Nerdy shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 51.0% of Nerdy shares are owned by insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nerdy and its peers, 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 peers stronger consensus rating and higher possible upside, analysts clearly believe Nerdy has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Nerdy and its peers revenue, earnings per share 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 peers have higher revenue and earnings than Nerdy. Nerdy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Nerdy peers 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.