Comparing China Liberal Education (NASDAQ:CLEU) & Youdao (NYSE:DAO)

China Liberal Education (NASDAQ:CLEUGet Rating) and Youdao (NYSE:DAOGet Rating) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

2.8% of China Liberal Education shares are held by institutional investors. Comparatively, 85.3% of Youdao shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for China Liberal Education and Youdao, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Liberal Education 0 0 0 0 N/A
Youdao 0 3 2 0 2.40

Youdao has a consensus price target of $16.40, suggesting a potential upside of 191.30%. Given Youdao’s higher probable upside, analysts plainly believe Youdao is more favorable than China Liberal Education.

Valuation and Earnings

This table compares China Liberal Education and Youdao’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Liberal Education $3.91 million 8.68 -$1.25 million N/A N/A
Youdao $630.16 million 1.13 -$156.24 million ($1.26) -4.47

China Liberal Education has higher earnings, but lower revenue than Youdao.

Volatility & Risk

China Liberal Education has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Youdao has a beta of -0.61, indicating that its share price is 161% less volatile than the S&P 500.

Profitability

This table compares China Liberal Education and Youdao’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Liberal Education N/A N/A N/A
Youdao -19.57% N/A -41.24%

Summary

China Liberal Education beats Youdao on 5 of the 9 factors compared between the two stocks.

China Liberal Education Company Profile (Get Rating)

China Liberal Education Holdings Limited provides educational services and products under the China Liberal brand name in China. The company offers Sino-foreign jointly managed and delivered academic programs, including undergraduate and postgraduate education; and diploma and non-degree higher education, and senior secondary education programs in the areas of languages, liberal arts, and businesses. It also provides overseas study consulting and technological consulting services for Chinese universities to enhance their campus information and data management system, as well as to optimize their teaching, operating, and management environment. The company's consulting services include campus intranet solution buildout, school management software customization, smart devices, installation and testing, and school management data collection and analysis. In addition, it develops and provides textbooks and other course materials to students enrolled under the Sino-foreign Jointly Managed Academic Programs, as well as offers job readiness training to graduating students. The company was founded in 2011 and is headquartered in Beijing, the People's Republic of China.

Youdao Company Profile (Get Rating)

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 Lamp, 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, 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.

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