Nerdy (NYSE:NRDY – Get Rating) and Chegg (NYSE:CHGG – Get Rating) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Nerdy and Chegg, as reported by MarketBeat.
Get Nerdy alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nerdy | 0 | 2 | 7 | 0 | 2.78 |
| Chegg | 0 | 10 | 3 | 0 | 2.23 |
Nerdy presently has a consensus price target of $4.90, suggesting a potential upside of 133.33%. Chegg has a consensus price target of $27.55, suggesting a potential upside of 9.05%. Given Nerdy's stronger consensus rating and higher possible upside, analysts clearly believe Nerdy is more favorable than Chegg.
Profitability
This table compares Nerdy and Chegg's net margins, return on equity and return on assets.| Net Margins | Return on Equity | Return on Assets | |
| Nerdy | -5.63% | -61.91% | -34.47% |
| Chegg | 37.58% | 7.19% | 2.55% |
Earnings & Valuation
This table compares Nerdy and Chegg's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nerdy | $140.66 million | 2.40 | -$27.33 million | ($0.11) | -19.09 |
| Chegg | $776.27 million | 4.08 | -$1.46 million | $1.48 | 17.07 |
Chegg has higher revenue and earnings than Nerdy. Nerdy is trading at a lower price-to-earnings ratio than Chegg, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
70.8% of Nerdy shares are owned by institutional investors. Comparatively, 92.9% of Chegg shares are owned by institutional investors. 31.1% of Nerdy shares are owned by company insiders. Comparatively, 2.3% of Chegg shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Nerdy has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Chegg has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.
Summary
Chegg beats Nerdy on 9 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 Chegg
(Get Rating)
Chegg, Inc. operates direct-to-student learning platform that supports students starting with their academic journey and extending into their careers with products and services to support and help them better understand their academic course materials. The company offers Chegg Services, which include subscription services; and required materials that comprise its print textbooks and eTextbooks. Its subscription services include Chegg Study, which helps students master challenging concepts on their own; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various Chegg Services product offerings, including Chegg Study, Chegg Writing, and Chegg Math Solver services, which creates an integrated platform of connected academic support services; Busuu, an online language learning solution that offers a comprehensive solution through a combination of self-paced lessons, live classes with expert tutors, and the ability to learn and practice with members of the Busuu language learning community; and Thinkful, a skills-based learning platform that offers professional courses along with networking, interviewing, and career services. The company also provides other services, such as Chegg Life, Chegg Prep, and Chegg Internships; provides personal and professional development skills training; and rents and sells print textbooks and eTextbooks. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.
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