Head-To-Head Analysis: NerdWallet (NASDAQ:NRDS) and Cheer (NASDAQ:CHR)

Cheer (NASDAQ:CHR) and NerdWallet (NASDAQ:NRDS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Valuation & Earnings

This table compares Cheer and NerdWallet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheer	$152.33 million	0.18	$30.48 million	N/A	N/A
NerdWallet	$599.40 million	1.39	-$11.80 million	($0.14)	-81.28

Cheer has higher earnings, but lower revenue than NerdWallet.

Risk & Volatility

Cheer has a beta of -0.35, meaning that its stock price is 135% less volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Profitability

This table compares Cheer and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheer	N/A	N/A	N/A
NerdWallet	-1.65%	-2.90%	-2.45%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cheer and NerdWallet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheer	0	0	0	0	0.00
NerdWallet	0	1	4	0	2.80

NerdWallet has a consensus price target of $17.60, suggesting a potential upside of 54.66%. Given NerdWallet’s stronger consensus rating and higher probable upside, analysts plainly believe NerdWallet is more favorable than Cheer.

Insider and Institutional Ownership

18.5% of Cheer shares are held by institutional investors. Comparatively, 38.8% of NerdWallet shares are held by institutional investors. 41.7% of Cheer shares are held by insiders. Comparatively, 45.9% of NerdWallet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

NerdWallet beats Cheer on 8 of the 12 factors compared between the two stocks.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People’s Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People’s Republic of China.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.