WallStSmart

Youdao Inc (DAO)vsStride Inc (LRN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Youdao Inc generates 135% more annual revenue ($5.96B vs $2.54B). LRN leads profitability with a 12.1% profit margin vs 1.2%. LRN trades at a lower P/E of 15.3x. LRN earns a higher WallStSmart Score of 65/100 (B-).

DAO

Avoid

28

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 5.7Quality: 6.0
Piotroski: 3/9Altman Z: 2.43

LRN

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 7.5Value: 7.3Quality: 8.5
Piotroski: 4/9Altman Z: 3.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DAOUndervalued (+84.4%)

Margin of Safety

+84.4%

Fair Value

$60.76

Current Price

$11.66

$49.10 discount

UndervaluedFair: $60.76Overvalued
LRNUndervalued (+4.9%)

Margin of Safety

+4.9%

Fair Value

$87.09

Current Price

$101.96

$14.87 discount

UndervaluedFair: $87.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DAO1 strengths · Avg: 10.0/10
Debt/EquityHealth
-0.8910/10

Conservative balance sheet, low leverage

LRN5 strengths · Avg: 8.4/10
Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.558/10

Growing faster than its price suggests

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

Areas to Watch

DAO4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Market CapQuality
$1.38B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

LRN2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

EPS GrowthGrowth
-4.5%2/10

Earnings declined 4.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : DAO

The strongest argument for DAO centers on Debt/Equity.

Bull Case : LRN

The strongest argument for LRN centers on Altman Z-Score, PEG Ratio, P/E Ratio. PEG of 0.55 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 : LRN

The primary concerns for LRN are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

DAO carries more volatility with a beta of 0.56 — expect wider price swings.

DAO is growing revenue faster at 3.8% — sustainability is the question.

Monitor EDUCATION & TRAINING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LRN scores higher overall (65/100 vs 28/100). 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.

Stride Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Stride, Inc., a technology-based education company, provides its own and third-party online educational services, software systems and curricula to facilitate individualized learning for students primarily in kindergarten through grade 12 (K -12) in the United States and internationally. .

Visit Website →

Want to dig deeper into these stocks?