Analyzing Japan Tob (OTCMKTS:JAPAY) & Nerdy (NYSE:NRDY)

Japan Tob (OTCMKTS:JAPAY) and Nerdy (NYSE:NRDY) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Volatility and Risk

Japan Tob has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Nerdy has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Institutional and Insider Ownership

39.1% of Nerdy shares are held by institutional investors. 51.0% of Nerdy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Japan Tob	N/A	N/A	N/A
Nerdy	-16.99%	-100.13%	-42.59%

Analyst Recommendations

This is a breakdown of recent ratings for Japan Tob and Nerdy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Japan Tob	1	1	1	0	2.00
Nerdy	1	1	0	0	1.50

Japan Tob currently has a consensus target price of $17.00, indicating a potential downside of 20.51%. Nerdy has a consensus target price of $15.00, indicating a potential upside of 71.47%. Given Nerdy’s higher possible upside, analysts clearly believe Nerdy is more favorable than Japan Tob.

Earnings & Valuation

This table compares Japan Tob and Nerdy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Japan Tob	$23.20 billion	3.27	$3.42 billion	$1.37	15.61
Nerdy	$178.99 million	0.62	-$39.92 million	($3.75)	-2.33

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

Summary

Japan Tob beats Nerdy on 10 of the 14 factors compared between the two stocks.

About Japan Tob

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.

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.