QuantaSing Group (NASDAQ:QSG) vs. Nerdy (NYSE:NRDY) Critical Analysis

Nerdy (NYSE:NRDY) and QuantaSing Group (NASDAQ:QSG) 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 dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nerdy and QuantaSing Group, as reported by MarketBeat.com.

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

Nerdy currently has a consensus target price of $2.31, suggesting a potential upside of 44.98%. Given Nerdy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Nerdy is more favorable than QuantaSing Group.

Risk & Volatility

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$190.23 million	1.53	-$40.17 million	($0.38)	-4.20
QuantaSing Group	$3.48 billion	0.04	$53.05 million	$1.05	2.55

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 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 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.