Nerdy (NYSE:NRDY – Get Free Report) and Carriage Services (NYSE:CSV – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings and target prices for Nerdy and Carriage Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nerdy | 1 | 1 | 0 | 0 | 1.50 |
| Carriage Services | 1 | 1 | 3 | 0 | 2.40 |
Nerdy presently has a consensus target price of $15.00, suggesting a potential upside of 70.45%. Carriage Services has a consensus target price of $51.00, suggesting a potential upside of 68.27%. Given Nerdy’s higher probable upside, analysts clearly believe Nerdy is more favorable than Carriage Services.
Volatility and Risk
Profitability
This table compares Nerdy and Carriage Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nerdy | -16.99% | -100.13% | -42.59% |
| Carriage Services | 10.69% | 19.23% | 3.71% |
Valuation and Earnings
This table compares Nerdy and Carriage Services”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nerdy | $178.99 million | 0.63 | -$39.92 million | ($3.75) | -2.35 |
| Carriage Services | $417.44 million | 1.15 | $51.51 million | $2.79 | 10.86 |
Carriage Services has higher revenue and earnings than Nerdy. Nerdy is trading at a lower price-to-earnings ratio than Carriage Services, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
39.1% of Nerdy shares are owned by institutional investors. Comparatively, 66.5% of Carriage Services shares are owned by institutional investors. 51.0% of Nerdy shares are owned by insiders. Comparatively, 2.7% of Carriage Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Carriage Services beats Nerdy on 11 of the 14 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 Carriage Services
Carriage Services, Inc. provides funeral and cemetery services, and merchandise in the United States. It operates in two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment provides consultation services; funeral home facilities for visitation and memorial services; transportation services; removal and preparation of remains; sale of caskets and urns; cremation services; and related funeral merchandise. The Cemetery Operations segment sells interment rights for grave sites, lawn crypts, mausoleum spaces, and niches; related cemetery merchandise, including memorial markers, outer burial containers, and monuments; and interments, inurnments, and installation of cemetery merchandise services. Carriage Services, Inc. was founded in 1991 and is based in Houston, Texas.
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