Youdao (NYSE: DAO – Get a rating) and Graham (NYSE: GHC – Get a rating) are both business services companies, but which is the better action? We’ll compare the two companies based on valuation strength, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Insider and Institutional Ownership
85.3% of Youdao shares are held by institutional investors. Comparatively, 64.5% of Graham shares are held by institutional investors. 20.5% of Graham shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Youdao has a beta of -0.48, suggesting its stock price is 148% less volatile than the S&P 500. Comparatively, Graham has a beta of 1.04, suggesting its stock price is 4% more volatile than the S&P 500.
This table compares Youdao and Graham’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%|
Benefits and evaluation
This chart compares Youdao and Graham’s gross revenue, earnings per share, and valuation.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Youdao||$630.16 million||0.88||-$156.24 million||($0.97)||-4.53|
|Graham||$3.19 billion||0.87||$352.08 million||$67.44||8.46|
Graham has higher revenue and profit than Youdao. Youdao is trading at a lower price-to-earnings ratio than Graham, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Youdao and Graham, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Graham||0||0||0||0||N / A|
Youdao currently has a consensus target price of $14.25, indicating a potential upside of 224.60%. Given Youdao’s likely higher upside, analysts clearly think Youdao is more favorable than Graham.
Graham beats Youdao on 9 of the 13 factors compared between the two stocks.
Youdao, Inc., an Internet technology company, provides online content, community, communication and commerce services 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 of different age groups for their learning needs through its websites and mobile applications. It offers online knowledge tools including Youdao and other dictionaries and translation tools; learning services consisting of tutoring, premium pay and other services; STEAM courses, adult and professional courses and other courses, such as the MOOC of the University of China; smart devices, such as Youdao Dictionary Pen, Youdao Listening Pod, Youdao Smart Lamp, Youdao Pocket Translator and Youdao Super Dictionary; education digitization solutions including technologies and solutions licensed to school or enterprise customers, such as Youdao Smart Learning Terminal and Youdao Smart Cloud; and online marketing services. Additionally, the company offers online courses including Youdao Premium Courses and NetEase Cloud Classroom, as well as technical support for Variable Interest Entities (VIEs). Youdao, Inc. was founded in 2006 and is headquartered in Hangzhou, China. Youdao, Inc. is a subsidiary of NetEase, Inc.
Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides test preparation services and materials; data science and training services; professional training and preparation for examinations for professional certifications and licenses; and non-academic operations support services at Purdue University Global. The company also offers training, test prep, and credentials for accounting and financial services professionals; English training, academic preparation programs and test preparation for English proficiency exams; and A-level exam preparation services, as well as three colleges, a trade school, a college, and an online education institution. In addition, it owns and operates seven television stations; and provides social media management tools to connect newsrooms with their users, and produces Foreign Policy magazine and the ForeignPolicy.com website. Additionally, the company publishes Slate, an online magazine; and two French language news magazine websites on slate.fr and slateafrique.com. Additionally, it provides social media marketing solutions; home care and palliative care services; burners, igniters, dampers and controls; screw jacks, linear actuators and related linear motion products, and lifting systems; pressure impregnated kiln dried lumber and plywood products; cybersecurity training solutions; digital advertising services; and charging and data systems, industrial and commercial interior lighting solutions, and electrical components and assemblies. The company also owns and operates 11 restaurants and entertainment venues; and carries out automobile dealership activities. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.
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