Reviewing Bright Scholar Education (NYSE:BEDU) and Nerdy (NYSE:NRDY)

Bright Scholar Education (NYSE:BEDU) and Nerdy (NYSE:NRDY) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Insider and Institutional Ownership

26.1% of Bright Scholar Education shares are owned by institutional investors. Comparatively, 39.1% of Nerdy shares are owned by institutional investors. 84.8% of Bright Scholar Education shares are owned by insiders. Comparatively, 38.8% of Nerdy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Bright Scholar Education and Nerdy, as provided by MarketBeat.com.

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

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

Earnings & Valuation

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

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

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

Volatility and Risk

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

Profitability

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

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

Summary

Nerdy beats Bright Scholar Education on 6 of the 11 factors compared between the two stocks.

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.

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.