Skillz (NYSE:SKLZ) vs. NerdWallet (NASDAQ:NRDS) Head-To-Head Comparison

NerdWallet (NASDAQ:NRDS) and Skillz (NYSE:SKLZ) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Valuation & Earnings

This table compares NerdWallet and Skillz”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NerdWallet	$599.00 million	1.67	-$11.80 million	($0.17)	-75.88
Skillz	$118.06 million	1.03	-$101.36 million	($5.11)	-1.11

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

Insider and Institutional Ownership

38.8% of NerdWallet shares are held by institutional investors. Comparatively, 19.4% of Skillz shares are held by institutional investors. 45.9% of NerdWallet shares are held by insiders. Comparatively, 22.7% of Skillz shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NerdWallet	-1.85%	-2.98%	-2.56%
Skillz	-47.40%	-43.56%	-22.71%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NerdWallet and Skillz, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NerdWallet	0	2	4	0	2.67
Skillz	0	2	2	0	2.50

NerdWallet presently has a consensus price target of $16.00, suggesting a potential upside of 24.03%. Skillz has a consensus price target of $10.67, suggesting a potential upside of 88.46%. Given Skillz’s higher probable upside, analysts plainly believe Skillz is more favorable than NerdWallet.

Volatility and Risk

NerdWallet has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Skillz has a beta of 2.78, suggesting that its stock price is 178% more volatile than the S&P 500.

Summary

NerdWallet beats Skillz on 11 of the 14 factors compared between the two stocks.

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.

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.