Critical Contrast: Nerdy (NYSE:NRDY) and QuantaSing Group (NASDAQ:QSG)

QuantaSing Group (NASDAQ:QSG) and Nerdy (NYSE:NRDY) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for QuantaSing Group and Nerdy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantaSing Group	0	0	0	0	0.00
Nerdy	1	9	1	0	2.00

Nerdy has a consensus target price of $2.31, suggesting a potential upside of 48.71%. Given Nerdy’s stronger consensus rating and higher possible upside, analysts clearly believe Nerdy is more favorable than QuantaSing Group.

Volatility and Risk

QuantaSing Group has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Nerdy has a beta of 2, indicating that its stock price is 100% more volatile than the S&P 500.

Insider & Institutional Ownership

39.1% of Nerdy shares are owned by institutional investors. 50.9% of Nerdy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares QuantaSing Group and Nerdy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuantaSing Group	10.67%	88.29%	28.26%
Nerdy	-19.31%	-47.45%	-32.83%

Valuation & Earnings

This table compares QuantaSing Group and Nerdy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantaSing Group	$3.48 billion	0.04	$53.05 million	$1.05	2.86
Nerdy	$190.23 million	1.49	-$40.17 million	($0.38)	-4.09

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

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.

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.