Nerdy (NYSE:NRDY) and Classover (NASDAQ:KIDZ) Head to Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Classover	-338.62%	-167.79%	-59.29%
Nerdy	-16.99%	-100.13%	-42.59%

Institutional and Insider Ownership

74.7% of Classover shares are held by institutional investors. Comparatively, 39.1% of Nerdy shares are held by institutional investors. 0.1% of Classover shares are held by insiders. Comparatively, 51.0% of Nerdy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Classover has a beta of -0.71, suggesting that its share price is 171% less volatile than the S&P 500. Comparatively, Nerdy has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Classover and Nerdy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Classover	1	0	0	0	1.00
Nerdy	1	1	0	0	1.50

Nerdy has a consensus price target of $15.00, indicating a potential upside of 70.45%. Given Nerdy’s stronger consensus rating and higher probable upside, analysts clearly believe Nerdy is more favorable than Classover.

Valuation & Earnings

This table compares Classover and Nerdy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Classover	$3.37 million	0.76	-$7.05 million	$99.95	0.03
Nerdy	$178.99 million	0.63	-$39.92 million	($3.75)	-2.35

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

Summary

Nerdy beats Classover on 8 of the 13 factors compared between the two stocks.

About Classover

Classover is an online enrichment program in Manhattan, New York that offers over 20 courses taught by certified instructors. It caters to children aged 4 to 17, providing personalized attention and a supportive learning environment. Classover is recognized worldwide by over 20,000 parents and children in more than 34 countries. Classover’s proprietary course platform app provides exclusive benefits to students, including access to class schedules, remaining class credits, and class history. As an official test center for the Math Kangaroo Competition and other high-value competition channels, Classover is certified to provide high-quality teaching services to help students improve their academic performance. The school’s WASC certification is a testament to its teaching quality, meeting high standards in student satisfaction, teacher qualifications, classroom environment, and course content quality. Classover limits class size to six students to ensure personalized attention, delivering over 330,000 hours of online classes with a course renewal rate exceeding 90%. The platform has helped students win competition awards, making it a recognized “The Best Parenting Tool” in the parent community.

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.