Youdao Inc (DAO)vsNew Oriental Education & Technology (EDU)
DAO
Youdao Inc
$11.66
+1.04%
CONSUMER DEFENSIVE · Cap: $1.38B
EDU
New Oriental Education & Technology
$45.74
-1.15%
CONSUMER DEFENSIVE · Cap: $7.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Youdao Inc generates 11% more annual revenue ($5.96B vs $5.37B). EDU leads profitability with a 7.8% profit margin vs 1.2%. EDU trades at a lower P/E of 17.3x. EDU earns a higher WallStSmart Score of 69/100 (B-).
DAO
Avoid28
out of 100
Grade: F
EDU
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.4%
Fair Value
$60.76
Current Price
$11.66
$49.10 discount
Margin of Safety
+81.9%
Fair Value
$338.04
Current Price
$45.74
$292.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Earnings expanding 60.0% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
19.8% revenue growth
Areas to Watch
3.8% revenue growth
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
1.2% margin — thin
7.8% margin — thin
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : DAO
The strongest argument for DAO centers on Debt/Equity.
Bull Case : EDU
The strongest argument for EDU centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 19.8% demonstrates continued momentum. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bear Case : DAO
The primary concerns for DAO are Revenue Growth, Market Cap, Return on Equity. A P/E of 126.7x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.
Bear Case : EDU
The primary concerns for EDU are Profit Margin, Free Cash Flow.
Key Dynamics to Monitor
DAO profiles as a value stock while EDU is a growth play — different risk/reward profiles.
DAO carries more volatility with a beta of 0.56 — expect wider price swings.
EDU is growing revenue faster at 19.8% — sustainability is the question.
Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EDU scores higher overall (69/100 vs 28/100) and 19.8% revenue growth. DAO offers better value entry with a 84.4% margin of safety. Both earn "Strong 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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