Youdao (NYSE:DAO) & Mynd.ai (OTCMKTS:MYND) Head-To-Head Review

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

Valuation & Earnings

This table compares Youdao and Mynd.ai”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Youdao	$5.63 billion	0.19	-$77.46 million	$0.10	89.50
Mynd.ai	$267.38 million	0.14	-$37.86 million	N/A	N/A

Mynd.ai has lower revenue, but higher earnings than Youdao.

Profitability

This table compares Youdao and Mynd.ai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Youdao	1.50%	-3.75%	5.07%
Mynd.ai	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Youdao and Mynd.ai, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Youdao	0	1	0	0	2.00
Mynd.ai	0	0	0	0	0.00

Institutional and Insider Ownership

21.9% of Youdao shares are held by institutional investors. Comparatively, 64.6% of Mynd.ai shares are held by institutional investors. 43.0% of Youdao shares are held by insiders. Comparatively, 36.9% of Mynd.ai shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Youdao has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Mynd.ai has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Summary

Youdao beats Mynd.ai on 6 of the 10 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 Mynd.ai

Mynd.ai, Inc. operates in interactive technology offering hardware and software solutions. The company's solutions help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Its interactive displays and software are available in approximately 1 million learning and training spaces across 126 countries. The company's distribution network of approximately 4,000 reseller partners and its dedicated sales and support teams worldwide enable to deliver the service to its customers. The company was formerly known as Gravitas Education Holdings, Inc. and changed its name to Mynd.ai, Inc. in December 2023. Mynd.ai, Inc. was founded in 1998 and is based in Beijing, China.