Head-To-Head Analysis: Nerdy (NYSE:NRDY) vs. Lixiang Education (NASDAQ:LXEH)

Nerdy (NYSE:NRDY) and Lixiang Education (NASDAQ:LXEH) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for Nerdy and Lixiang Education, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	1	1	0	0	1.50
Lixiang Education	1	0	0	0	1.00

Nerdy presently has a consensus price target of $1.00, indicating a potential upside of 8.81%. Given Nerdy’s stronger consensus rating and higher probable upside, research analysts plainly believe Nerdy is more favorable than Lixiang Education.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nerdy	-22.30%	-95.27%	-52.65%
Lixiang Education	N/A	N/A	N/A

Institutional & Insider Ownership

39.1% of Nerdy shares are owned by institutional investors. Comparatively, 0.5% of Lixiang Education shares are owned by institutional investors. 51.5% of Nerdy shares are owned by company insiders. Comparatively, 75.0% of Lixiang Education shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Nerdy has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Lixiang Education has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Earnings & Valuation

This table compares Nerdy and Lixiang Education”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$178.99 million	0.97	-$39.92 million	($0.34)	-2.70
Lixiang Education	$4.49 million	0.03	-$3.37 million	N/A	N/A

Lixiang Education has lower revenue, but higher earnings than Nerdy.

Summary

Nerdy beats Lixiang Education 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 Lixiang Education

Lixiang Education Holding Co., Ltd. provides primary and middle school education services from grade 1 to grade 9 in the People's Republic of China. As of December 31, 2020, the company operated two campuses, including Baiyun Campus and Yijing Campus. It also engages in the operation of food procurement. The company was formerly known as Lianwai Education Group Limited and changed its name to Lixiang Education Holding Co., Ltd. in May 26, 2020. The company was founded in 2001 and is headquartered in Lishui, the People's Republic of China.