New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) and Nerdy (NYSE:NRDY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings for New Oriental Education & Technology Group and Nerdy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Oriental Education & Technology Group | 0 | 6 | 3 | 0 | 2.33 |
| Nerdy | 1 | 2 | 0 | 0 | 1.67 |
New Oriental Education & Technology Group presently has a consensus target price of $65.30, indicating a potential upside of 16.25%. Nerdy has a consensus target price of $1.25, indicating a potential upside of 10.13%. Given New Oriental Education & Technology Group’s stronger consensus rating and higher possible upside, research analysts plainly believe New Oriental Education & Technology Group is more favorable than Nerdy.
Volatility and Risk
Insider & Institutional Ownership
39.1% of Nerdy shares are held by institutional investors. 15.5% of New Oriental Education & Technology Group shares are held by company insiders. Comparatively, 50.9% of Nerdy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares New Oriental Education & Technology Group and Nerdy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Oriental Education & Technology Group | 7.36% | 10.77% | 5.64% |
| Nerdy | -22.95% | -81.74% | -51.09% |
Earnings and Valuation
This table compares New Oriental Education & Technology Group and Nerdy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Oriental Education & Technology Group | $4.90 billion | 1.81 | $371.72 million | $2.27 | 24.74 |
| Nerdy | $177.87 million | 1.20 | -$42.58 million | ($0.35) | -3.24 |
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.
Summary
New Oriental Education & Technology Group beats Nerdy on 11 of the 14 factors compared between the two stocks.
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.
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.
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