Analyzing Youdao (NYSE:DAO) & Meta Data (NYSE:AIU)

Youdao (NYSE:DAOGet Free Report) and Meta Data (NYSE:AIUGet Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Valuation & Earnings

This table compares Youdao and Meta Data’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Youdao $762.52 million 0.63 -$77.46 million ($0.63) -6.12
Meta Data $32.43 million 1.19 $694.49 million N/A N/A

Meta Data has lower revenue, but higher earnings than Youdao.

Profitability

This table compares Youdao and Meta Data’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Youdao -10.22% N/A -30.27%
Meta Data N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations for Youdao and Meta Data, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Youdao 0 1 0 0 2.00
Meta Data 0 0 0 0 N/A

Youdao currently has a consensus target price of $4.60, indicating a potential upside of 19.33%. Given Youdao’s higher possible upside, equities research analysts plainly believe Youdao is more favorable than Meta Data.

Institutional & Insider Ownership

21.9% of Youdao shares are held by institutional investors. Comparatively, 0.4% of Meta Data shares are held by institutional investors. 43.0% of Youdao shares are held by insiders. Comparatively, 12.7% of Meta Data shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Youdao has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500. Comparatively, Meta Data has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Summary

Meta Data beats Youdao on 5 of the 9 factors compared between the two stocks.

About Youdao

(Get Free Report)

Youdao, Inc., an internet technology company, provides online services in the field of content, community, communication, and commerce in China. It operates through three segments: Learning Services, Smart Devices, and Online Marketing Services. The company provides various learning content, applications, and solutions, which cover topics and target people from various age groups for their learning needs through its websites and mobile applications. It offers online knowledge tools, which include Youdao and other dictionaries and translation tools; learning services consisting of tutoring, fee-based premium, and other services; STEAM courses, adult and vocational courses, and other courses, such as China University MOOC; smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, Youdao Smart light, Youdao Pocket Translator, and Youdao Super Dictionary; education digitalization solutions comprising technologies and solutions licensed to schools or enterprise customers, such as Youdao Smart Learning Terminal, Youdao Sports, and Youdao Smart Cloud; and online marketing services. In addition, the company provides online courses comprising Youdao Premium Courses and NetEase Cloud Classroom, as well as technical support to the variable interest entities (VIEs). Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.

About Meta Data

(Get Free Report)

Meta Data Limited, together with its subsidiaries, operates K-12 after-school education platform that focuses on young children mathematics training services and FasTrack English services in the People's Republic of China and internationally. The company's products include Artificial Intelligent Education (AIE), a smart training system incorporating virtual reality, artificial intelligence, blockchain, and other technologies to facilitate the teaching and training process; Artificial Intelligent Universe (AIU), provides software and hardware infrastructure (IAAS) to Metaverse business operators or individual users targeted to improve the accessibility of rendering modes through cloud computing and edge computing algorithms and computing power to improve the virtual world; and smart ID card services. It also provides technical services, including simulation teaching modules, 3D teaching modules, virtual reality modules, etc. for smart education business operation service providers, as well as digital services; project completion inspection services; and customer acceptance services. The company was formerly known as OneSmart International Education Group Limited and changed its name to Meta Data Limited in April 2022. Meta Data Limited was founded in 2007 and is headquartered in Sha Tin, Hong Kong.

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