Nerdy (NYSE:NRDY) and YogaWorks (OTCMKTS:YOGAQ) Financial Analysis

Nerdy (NYSE:NRDY) and YogaWorks (OTCMKTS:YOGAQ) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Institutional & Insider Ownership

39.1% of Nerdy shares are owned by institutional investors. 50.9% of Nerdy shares are owned by company insiders. Comparatively, 72.4% of YogaWorks 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 Nerdy and YogaWorks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nerdy	-24.91%	-77.11%	-49.93%
YogaWorks	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Nerdy and YogaWorks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nerdy	2	4	1	0	1.86
YogaWorks	0	0	0	0	0.00

Nerdy currently has a consensus target price of $1.75, suggesting a potential upside of 38.89%. Given Nerdy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Nerdy is more favorable than YogaWorks.

Earnings and Valuation

This table compares Nerdy and YogaWorks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nerdy	$190.23 million	1.23	-$42.58 million	($0.39)	-3.23
YogaWorks	N/A	N/A	N/A	N/A	N/A

YogaWorks has lower revenue, but higher earnings than Nerdy.

Summary

Nerdy beats YogaWorks on 5 of the 9 factors compared between 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 YogaWorks

YogaWorks, Inc. operates yoga studios under the YogaWorks and Yoga Tree brand names in the United States. It primarily provides yoga classes, workshops, teacher training programs, and yoga-related retail merchandise. The company offers online yoga instruction and programming services through its MyYogaWorks.com Web platform. As of May 14, 2019, it owned and operated 68 studios in Los Angeles, Orange County, Northern California, New York City, Boston, Baltimore, the Washington, D.C. area, Houston, and Atlanta. The company was formerly known as YWX Holdings, Inc. and changed its name to YogaWorks, Inc. in April 2017. YogaWorks, Inc. was founded in 1987 and is headquartered in Culver City, California. On October 14, 2020, YogaWorks, Inc., a Delaware C-Corporation, along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The plan was later approved as Chapter 11 liquidation on May 5, 2021.