Meta Data (NYSE:AIU) and Youdao (NYSE:DAO) Head to Head Review

Youdao (NYSE:DAO) and Meta Data (NYSE:AIU) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Institutional & Insider Ownership

21.9% of Youdao shares are owned by institutional investors. Comparatively, 0.4% of Meta Data shares are owned by institutional investors. 43.0% of Youdao shares are owned by company insiders. Comparatively, 12.7% of Meta Data shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Youdao and Meta Data’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Youdao	-10.22%	N/A	-30.27%
Meta Data	N/A	N/A	N/A

Earnings and Valuation

This table compares Youdao and Meta Data’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Youdao	$762.52 million	0.60	-$77.46 million	($0.63)	-5.83
Meta Data	$32.43 million	1.17	$694.49 million	N/A	N/A

Meta Data has lower revenue, but higher earnings than Youdao.

Risk and Volatility

Youdao has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500. Comparatively, Meta Data has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Youdao and Meta Data, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Youdao	0	1	0	0	2.00
Meta Data	0	0	0	0	N/A

Youdao currently has a consensus price target of $4.60, suggesting a potential upside of 25.34%. Given Youdao’s higher probable upside, research analysts plainly believe Youdao is more favorable than Meta Data.

Summary

Meta Data beats Youdao on 5 of the 9 factors compared between the two stocks.

About Youdao

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 light, 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, Youdao Sports, 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 Meta Data

Meta Data Limited, together with its subsidiaries, operates K-12 after-school education platform that focuses on young children mathematics training services and FasTrack English services in the People's Republic of China and internationally. The company's products include Artificial Intelligent Education (AIE), a smart training system incorporating virtual reality, artificial intelligence, blockchain, and other technologies to facilitate the teaching and training process; Artificial Intelligent Universe (AIU), provides software and hardware infrastructure (IAAS) to Metaverse business operators or individual users targeted to improve the accessibility of rendering modes through cloud computing and edge computing algorithms and computing power to improve the virtual world; and smart ID card services. It also provides technical services, including simulation teaching modules, 3D teaching modules, virtual reality modules, etc. for smart education business operation service providers, as well as digital services; project completion inspection services; and customer acceptance services. The company was formerly known as OneSmart International Education Group Limited and changed its name to Meta Data Limited in April 2022. Meta Data Limited was founded in 2007 and is headquartered in Sha Tin, Hong Kong.