Japan Tob (OTCMKTS:JAPAY) and Nerdy (NYSE:NRDY) Critical Contrast

Nerdy (NYSE:NRDY) and Japan Tob (OTCMKTS:JAPAY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Nerdy and Japan Tob, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	1	1	0	0	1.50
Japan Tob	1	1	1	0	2.00

Nerdy presently has a consensus target price of $15.00, suggesting a potential upside of 71.47%. Japan Tob has a consensus target price of $17.00, suggesting a potential downside of 20.51%. Given Nerdy’s higher possible upside, equities analysts clearly believe Nerdy is more favorable than Japan Tob.

Valuation & Earnings

This table compares Nerdy and Japan Tob”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$178.99 million	0.62	-$39.92 million	($3.75)	-2.33
Japan Tob	$23.20 billion	3.27	$3.42 billion	$1.37	15.61

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nerdy	-16.99%	-100.13%	-42.59%
Japan Tob	N/A	N/A	N/A

Insider & Institutional Ownership

39.1% of Nerdy shares are owned by institutional investors. 51.0% of Nerdy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Nerdy has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Japan Tob has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Summary

Japan Tob beats Nerdy on 10 of the 14 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 Japan Tob

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.