Youdao (NYSE:DAO – Get Free Report) and Auddia (NASDAQ:AUUD – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Profitability
This table compares Youdao and Auddia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Youdao | 2.47% | -8.10% | 9.45% |
| Auddia | N/A | -206.92% | -180.29% |
Earnings and Valuation
This table compares Youdao and Auddia”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Youdao | $782.62 million | 1.45 | $11.26 million | $0.17 | 55.77 |
| Auddia | N/A | N/A | -$8.72 million | ($23.37) | -0.04 |
Youdao has higher revenue and earnings than Auddia. Auddia is trading at a lower price-to-earnings ratio than Youdao, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
21.9% of Youdao shares are owned by institutional investors. 43.0% of Youdao shares are owned by company insiders. Comparatively, 5.5% of Auddia 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.
Risk & Volatility
Youdao has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Auddia has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Youdao and Auddia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Youdao | 1 | 0 | 0 | 0 | 1.00 |
| Auddia | 1 | 0 | 0 | 0 | 1.00 |
Summary
Youdao beats Auddia on 9 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 Auddia
Auddia Inc., a technology company, develops AI Platform for the audio and podcast markets. The company's flagship product is faidr, which enables consumers to listen to various AM/FM radio station with commercial breaks replaced with personalized audio content, including popular and new music, news, and weather. It also provides Vodacast mobile app, an interactive differentiated podcasting that allows podcasters to give their audiences an interactive audio experience; and Podcast Hub, a content management system. The company was formerly known as Clip Interactive, LLC and changed its name to Auddia Inc. in November 2019. Auddia Inc. was founded in 2012 and is headquartered in Boulder, Colorado.
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