Financial Analysis: Bright Scholar Education (NYSE:BEDU) and Nerdy (NYSE:NRDY)

Nerdy (NYSE:NRDY) and Bright Scholar Education (NYSE:BEDU) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nerdy	-20.77%	-48.96%	-28.57%
Bright Scholar Education	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Nerdy and Bright Scholar Education, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	0	1	5	0	2.83
Bright Scholar Education	0	0	0	0	N/A

Nerdy presently has a consensus price target of $4.71, suggesting a potential upside of 61.17%. Given Nerdy’s higher possible upside, equities analysts plainly believe Nerdy is more favorable than Bright Scholar Education.

Institutional & Insider Ownership

39.1% of Nerdy shares are owned by institutional investors. Comparatively, 26.1% of Bright Scholar Education shares are owned by institutional investors. 38.8% of Nerdy shares are owned by company insiders. Comparatively, 84.8% of Bright Scholar Education shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Nerdy has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Bright Scholar Education has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Earnings & Valuation

This table compares Nerdy and Bright Scholar Education’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$193.40 million	2.63	-$40.17 million	($0.42)	-6.96
Bright Scholar Education	$292.60 million	0.22	-$54.44 million	N/A	N/A

Nerdy has higher earnings, but lower revenue than Bright Scholar Education.

Summary

Nerdy beats Bright Scholar 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 Bright Scholar Education

Bright Scholar Education Holdings Limited, an education service provider, operates and provides K-12 schools and complementary education services in China, Hong Kong, Canada, the United States, and the United Kingdom. The company operates in three segments: Overseas Schools; Complementary Education Services; and Domestic Kindergartens and K-12 Operation Services. It also offers a range of complementary education services, including camps and after-school programs, and international education consulting services, as well as career counselling and international contest training services. The company was founded in 1994 and is headquartered in Foshan, China.