Comparing Nerdy (NYSE:NRDY) & Grand Canyon Education (NASDAQ:LOPE)

Nerdy (NYSE:NRDYGet Rating) and Grand Canyon Education (NASDAQ:LOPEGet Rating) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Nerdy and Grand Canyon Education’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nerdy $162.66 million 2.89 -$35.40 million ($0.43) -6.63
Grand Canyon Education $911.31 million 3.78 $184.68 million $6.00 18.68

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

Insider and Institutional Ownership

70.8% of Nerdy shares are owned by institutional investors. Comparatively, 96.8% of Grand Canyon Education shares are owned by institutional investors. 38.8% of Nerdy shares are owned by company insiders. Comparatively, 1.8% of Grand Canyon Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Nerdy has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Grand Canyon Education has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Nerdy and Grand Canyon Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nerdy 0 2 7 0 2.78
Grand Canyon Education 0 0 2 0 3.00

Nerdy currently has a consensus target price of $4.90, suggesting a potential upside of 71.93%. Grand Canyon Education has a consensus target price of $133.00, suggesting a potential upside of 18.65%. Given Nerdy’s higher possible upside, research analysts clearly believe Nerdy is more favorable than Grand Canyon Education.

Profitability

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

Net Margins Return on Equity Return on Assets
Nerdy -21.76% -98.82% -56.65%
Grand Canyon Education 20.29% 30.99% 23.58%

Summary

Grand Canyon Education beats Nerdy on 10 of the 14 factors compared between the two stocks.

About Nerdy

(Get Rating)

Nerdy, Inc. operates platform for live online learning. The company's purpose-built proprietary platform leverages technology, including AI, to connect learners of various ages to experts, 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 classes, large format group classes, and adaptive self-study. 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 schools and other institutions. The company was founded in 2007 and is headquartered in Saint Louis, Missouri.

About Grand Canyon Education

(Get Rating)

Grand Canyon Education, Inc. engages in the provision of education services. It offers graduate and undergraduate degree programs and certificates across colleges. The company was founded by Christopher C. Richardson and Brent D. Richardson in November 2003 and is headquartered in Phoenix, AZ.

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