Investors are comparing the performance of two prominent consumer discretionary companies: New Oriental Education & Technology Group and Nerdy. Both companies are publicly traded, but they exhibit different strengths in areas such as profitability, valuation, and investor sentiment.
Financial Performance and Valuation
Analysis reveals that New Oriental Education & Technology Group outperforms Nerdy in terms of revenue and earnings. The Chinese education provider recorded significantly higher gross revenue and earnings per share compared to its American counterpart. While New Oriental’s strong financial performance is evident, Nerdy has a more attractive price-to-earnings (P/E) ratio, suggesting that it is currently a more affordable stock option.
Institutional ownership further highlights the differences between the two companies. Approximately 39.1% of Nerdy‘s shares are held by institutional investors, a strong indicator of confidence from large money managers. In contrast, only 15.5% of New Oriental Education & Technology Group shares are held by insiders, with 50.9% of Nerdy‘s shares held by insiders. This disparity indicates a higher confidence level among insiders in Nerdy than in New Oriental.
Analyst Recommendations and Market Sentiment
Recent recommendations from analysts suggest a varied outlook for both companies. According to MarketBeat.com, New Oriental Education & Technology Group has a consensus target price of $59.53, indicating a potential upside of 6.53%. Conversely, analysts have set a target price of $1.25 for Nerdy, suggesting an upside potential of 11.11%. The higher potential upside for Nerdy may signal a more favorable outlook among analysts.
When assessing risk, volatility plays a crucial role. New Oriental Education & Technology Group has a beta of 0.32, making it significantly less volatile than the S&P 500 by approximately 68%. In contrast, Nerdy exhibits a much higher beta of 1.78, indicating it is 78% more volatile than the S&P 500. This discrepancy suggests that while Nerdy may offer higher potential returns, it also carries increased risk.
In summary, New Oriental Education & Technology Group has demonstrated superior performance in 10 of the 14 financial metrics evaluated against Nerdy. These findings provide investors with critical insights as they consider their options in the consumer discretionary sector.
About New Oriental Education & Technology Group: Founded on November 16, 1993, in Beijing, China, the company specializes in private educational services. Its operations encompass educational services, test preparation, and e-commerce.
About Nerdy: Established in 2007 and headquartered in Saint Louis, Missouri, Nerdy offers a live online learning platform that connects students with tutors and educators across various subjects. Its flagship service, Varsity Tutors, is integral to its educational offerings.
Investors are encouraged to stay informed of the latest developments in both companies, as market conditions continue to evolve.
