Head-To-Head Comparison: Nerdy (NYSE:NRDY) & Stride (NYSE:LRN)

Nerdy (NYSE:NRDYGet Free Report) and Stride (NYSE:LRNGet Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nerdy 0 1 5 0 2.83
Stride 0 1 4 0 2.80

Nerdy presently has a consensus target price of $4.82, suggesting a potential upside of 209.07%. Stride has a consensus target price of $72.00, suggesting a potential upside of 5.60%. Given Nerdy’s stronger consensus rating and higher probable upside, analysts clearly believe Nerdy is more favorable than Stride.

Profitability

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

Net Margins Return on Equity Return on Assets
Nerdy -14.49% -41.24% -26.63%
Stride 9.29% 18.29% 10.26%

Valuation & Earnings

This table compares Nerdy and Stride’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nerdy $197.95 million 1.38 -$40.17 million ($0.28) -5.57
Stride $1.99 billion 1.48 $126.87 million $4.26 16.00

Stride has higher revenue and earnings than Nerdy. Nerdy is trading at a lower price-to-earnings ratio than Stride, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

39.1% of Nerdy shares are held by institutional investors. Comparatively, 98.2% of Stride shares are held by institutional investors. 31.4% of Nerdy shares are held by insiders. Comparatively, 2.8% of Stride shares are held by 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.

Volatility and Risk

Nerdy has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Stride has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Summary

Stride beats Nerdy on 9 of the 14 factors compared between the two stocks.

About Nerdy

(Get Free Report)

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 Stride

(Get Free Report)

Stride, Inc., a technology-based education service company, provides proprietary and third-party online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade (K-12) in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, and support students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners under Galvanize, Tech Elevator, and MedCerts brand names, as well as provides staffing and talent development services to employers. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020. Stride, Inc. was founded in 2000 and is headquartered in Reston, Virginia.

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