Head-To-Head Analysis: Lixiang Education (NASDAQ:LXEH) vs. Nerdy (NYSE:NRDY)

Lixiang Education (NASDAQ:LXEH) and Nerdy (NYSE:NRDY) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Volatility and Risk

Lixiang Education has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Nerdy has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lixiang Education and Nerdy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lixiang Education	$4.49 million	0.03	-$3.37 million	N/A	N/A
Nerdy	$178.99 million	0.95	-$39.92 million	($0.34)	-2.64

Lixiang Education has higher earnings, but lower revenue than Nerdy.

Profitability

This table compares Lixiang Education and Nerdy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lixiang Education	N/A	N/A	N/A
Nerdy	-22.30%	-95.27%	-52.65%

Insider and Institutional Ownership

0.5% of Lixiang Education shares are owned by institutional investors. Comparatively, 39.1% of Nerdy shares are owned by institutional investors. 75.0% of Lixiang Education shares are owned by insiders. Comparatively, 51.5% of Nerdy 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.

Analyst Recommendations

This is a breakdown of recent ratings for Lixiang Education and Nerdy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lixiang Education	1	0	0	0	1.00
Nerdy	1	1	0	0	1.50

Nerdy has a consensus target price of $1.00, indicating a potential upside of 11.36%. Given Nerdy’s stronger consensus rating and higher probable upside, analysts plainly believe Nerdy is more favorable than Lixiang Education.

Summary

Nerdy beats Lixiang Education on 6 of the 11 factors compared between the two stocks.

About Lixiang Education

Lixiang Education Holding Co., Ltd. provides primary and middle school education services from grade 1 to grade 9 in the People's Republic of China. As of December 31, 2020, the company operated two campuses, including Baiyun Campus and Yijing Campus. It also engages in the operation of food procurement. The company was formerly known as Lianwai Education Group Limited and changed its name to Lixiang Education Holding Co., Ltd. in May 26, 2020. The company was founded in 2001 and is headquartered in Lishui, the People's Republic of China.

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.