May 25, 2022

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Financial Analysis: Nerdy (NYSE:NRDY) & North Mountain Merger (NASDAQ:NMMC)


Nerdy (NYSE:NRDYGet Rating) and North Mountain Merger (NASDAQ:NMMCGet Rating) 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 risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Nerdy and North Mountain Merger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nerdy -7.00% -117.54% -3.53%
North Mountain Merger N/A -118.65% 3.75%

Analyst Recommendations

This is a breakdown of current ratings for Nerdy and North Mountain Merger, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nerdy 0 1 7 0 2.88
North Mountain Merger 0 0 0 0 N/A

Nerdy currently has a consensus target price of $9.13, suggesting a potential upside of 109.77%. Given Nerdy’s higher probable upside, equities research analysts clearly believe Nerdy is more favorable than North Mountain Merger.

Insider & Institutional Ownership

55.1% of Nerdy shares are owned by institutional investors. Comparatively, 92.1% of North Mountain Merger shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Nerdy has a beta of -0.37, meaning that its stock price is 137% less volatile than the S&P 500. Comparatively, North Mountain Merger has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500.

Earnings and Valuation

This table compares Nerdy and North Mountain Merger’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nerdy $140.66 million 4.89 -$27.33 million ($0.12) -36.25
North Mountain Merger N/A N/A $4.99 million N/A N/A

North Mountain Merger has lower revenue, but higher earnings than Nerdy.

Summary

North Mountain Merger beats Nerdy on 5 of the 9 factors compared between the two stocks.

About Nerdy (Get Rating)

Nerdy, Inc. operates platform for live online learning. The company’s purpose-built proprietary platform leverages technology, including AI, to connect learners of various ages to experts, 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 classes, large format group classes, and adaptive self-study. 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 schools and other institutions. The company was founded in 2007 and is headquartered in Saint Louis, Missouri.

About North Mountain Merger (Get Rating)

North Mountain Merger Corp. does not have significant operations. The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to focus on businesses in the financial technology segment of the financial services industry. The company was incorporated in 2020 and is based in New York, New York.



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