Youdao (NYSE:DAO – Get Rating) and Meten Holding Group (NASDAQ:METX – Get Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Risk and Volatility
Youdao has a beta of -0.48, meaning that its share price is 148% less volatile than the S&P 500. Comparatively, Meten Holding Group has a beta of -0.77, meaning that its share price is 177% less volatile than the S&P 500.
Earnings & Valuation
This table compares Youdao and Meten Holding Group’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Youdao | $630.16 million | 0.89 | -$156.24 million | ($0.97) | -4.59 |
| Meten Holding Group | $114.39 million | 0.11 | -$60.31 million | N/A | N/A |
Meten Holding Group has lower revenue, but higher earnings than Youdao.
Profitability
This table compares Youdao and Meten Holding Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Youdao | -15.57% | N/A | -35.60% |
| Meten Holding Group | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings for Youdao and Meten Holding Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Youdao | 0 | 2 | 2 | 0 | 2.50 |
| Meten Holding Group | 0 | 0 | 0 | 0 | N/A |
Youdao presently has a consensus target price of $14.25, indicating a potential upside of 220.22%. Given Youdao’s higher probable upside, equities analysts clearly believe Youdao is more favorable than Meten Holding Group.
Insider & Institutional Ownership
85.3% of Youdao shares are held by institutional investors. Comparatively, 2.7% of Meten Holding Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Youdao beats Meten Holding Group on 6 of the 9 factors compared between the two stocks.
About Youdao
(Get Rating)
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 Lamp, 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, 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 Meten Holding Group
(Get Rating)
Meten Holding Group Ltd. provides English language training (ELT) services in the People’s Republic of China. It operates through four segments: General Adult English Training, Overseas Training Services, Online English Training, and Junior English Training. The company delivers English language and future skills training for Chinese students and professionals. It offers adult and junior ELT services under the Meten brand name; junior ELT services under the Meten and ABC brand names; and online live streaming ELT courses under the Likeshuo brand name through a digital platform and network of learning centers. The company is also involved in the cryptocurrency mining, mining farm construction, and mining pool and data center operation activities. As of December 31, 2021, it had a network of 34 self-operated learning centers covering 15 cities in nine provinces, autonomous regions, and municipalities, as well as two franchised learning centers covering two cities in two provinces and municipalities. The company was formerly known as Meten EdtechX Education Group Ltd. and changed its name to Meten Holding Group Ltd. in August 2021. Meten Holding Group Ltd. was founded in 2006 and is headquartered in Shenzhen, the People’s Republic of China.
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