Youdao Inc (DAO)vsNew Oriental Education & Technology (EDU)
DAO
Youdao Inc
$10.31
+1.68%
CONSUMER DEFENSIVE · Cap: $1.23B
EDU
New Oriental Education & Technology
$56.49
+2.17%
CONSUMER DEFENSIVE · Cap: $9.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Youdao Inc generates 15% more annual revenue ($5.91B vs $5.14B). EDU leads profitability with a 7.4% profit margin vs 1.8%. EDU trades at a lower P/E of 23.0x. EDU earns a higher WallStSmart Score of 62/100 (C+).
DAO
Avoid33
out of 100
Grade: F
EDU
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-717.2%
Fair Value
$1.16
Current Price
$10.31
$9.15 premium
Margin of Safety
+45.5%
Fair Value
$112.32
Current Price
$56.49
$55.83 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
16.8% revenue growth
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 45.9% YoY
Areas to Watch
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
1.8% margin — thin
Operating margin of 3.9%
7.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DAO
The strongest argument for DAO centers on Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum.
Bull Case : EDU
The strongest argument for EDU centers on PEG Ratio, Price/Book, EPS Growth. Revenue growth of 14.7% demonstrates continued momentum. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bear Case : DAO
The primary concerns for DAO are Market Cap, Return on Equity, Profit Margin. A P/E of 60.3x leaves little room for execution misses. Thin 1.8% margins leave little buffer for downturns.
Bear Case : EDU
The primary concerns for EDU are Profit Margin.
Key Dynamics to Monitor
DAO profiles as a growth stock while EDU is a value play — different risk/reward profiles.
DAO carries more volatility with a beta of 0.45 — expect wider price swings.
DAO is growing revenue faster at 16.8% — sustainability is the question.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EDU scores higher overall (62/100 vs 33/100) and 14.7% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Youdao Inc
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
Youdao, Inc., an Internet technology company, provides online content, community, communication and commerce services in China. The company is headquartered in Hangzhou, China.
New Oriental Education & Technology
CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · China
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company is headquartered in Beijing, the People's Republic of China.
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