Contrasting Nerdy (NRDY) & Its Peers

Nerdy (NYSE:NRDY) is one of 165 public companies in the “Diversified Consumer Services” industry, but how does it weigh in compared to its peers? We will compare Nerdy to related companies based on the strength of its institutional ownership, risk, earnings, valuation, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations and price targets for Nerdy and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	1	0	1	0	2.00
Nerdy Competitors	1442	3453	5298	197	2.41

Nerdy presently has a consensus target price of $8.00, indicating a potential upside of 35.04%. As a group, “Diversified Consumer Services” companies have a potential upside of 64.36%. Given Nerdy’s peers stronger consensus rating and higher probable upside, analysts plainly believe Nerdy has less favorable growth aspects than its peers.

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	-15.24%	-107.48%	-38.14%
Nerdy Competitors	-3.82%	-29.65%	2.33%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nerdy	$178.99 million	-$39.92 million	-1.82
Nerdy Competitors	$3.26 billion	$221.82 million	15.38

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.

Volatility and Risk

Nerdy has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Nerdy’s peers have a beta of 0.53, meaning that their average stock price is 47% less volatile than the S&P 500.

Institutional and 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

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

About Nerdy

Nerdy, Inc. operates Varsity Tutors, an online learning platform that connects students with instructors for live instruction. Its services include one-on-one tutoring, small-group classes, test preparation and academic support across a range of subjects and grade levels. The platform also offers learning resources for families, schools and organizations, including instruction for professional and personal development. Nerdy delivers its services primarily online, allowing learners to access instruction from different locations.