Analyzing Nerdy (NYSE:NRDY) and Wah Fu Education Group (NASDAQ:WAFU)

Nerdy (NYSE:NRDY) and Wah Fu Education Group (NASDAQ:WAFU) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Volatility and Risk

Nerdy has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Wah Fu Education Group has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Nerdy and Wah Fu Education Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	0	1	5	0	2.83
Wah Fu Education Group	0	0	0	0	N/A

Nerdy currently has a consensus price target of $4.82, indicating a potential upside of 182.78%. Given Nerdy’s higher probable upside, analysts clearly believe Nerdy is more favorable than Wah Fu Education Group.

Institutional and Insider Ownership

39.1% of Nerdy shares are owned by institutional investors. 31.4% of Nerdy shares are owned by company insiders. Comparatively, 72.0% of Wah Fu Education Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Nerdy and Wah Fu Education Group’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%
Wah Fu Education Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Nerdy and Wah Fu Education Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$193.40 million	1.55	-$40.17 million	($0.28)	-6.09
Wah Fu Education Group	$10.69 million	0.81	$910,000.00	N/A	N/A

Wah Fu Education Group has lower revenue, but higher earnings than Nerdy.

Summary

Nerdy beats Wah Fu Education Group on 6 of the 11 factors compared between the two stocks.

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.

About Wah Fu Education Group

Wah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in the People's Republic of China. The company operates through two segments: Online Education Services, and Technological Development and Operation Services. The Online Education Services segment offers online education platforms to institutions, such as universities and training institutions, and online course development service companies. This segment provides self-study examination, continuing education, and non-diploma training platforms that allow students to enroll in courses for college credit; vocational education 1+X and higher vocational enrollment expansion teaching and educational administration platform; Huafu e-school system and paperless examination platform; and online training and examination preparation services directly to students. The Technological Development and Operation Services segment develops and maintains online education platforms and online courses for its clients, including universities and government agencies, as well as private clients, such as publishers; and provides consulting, maintenance, and updating services related to online education programs. In addition, the company produces online training course materials. Wah Fu Education Group Limited was founded in 1999 and is headquartered in Beijing, the People's Republic of China.