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 60.6x 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.
Compare with Other EDUCATION & TRAINING SERVICES Stocks
Want to dig deeper into these stocks?