Critical Comparison: Udemy (NASDAQ:UDMY) & Color Star Technology (NASDAQ:ADD)

Udemy (NASDAQ:UDMY) and Color Star Technology (NASDAQ:ADD) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Earnings & Valuation

This table compares Udemy and Color Star Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Udemy	$790.02 million	1.43	-$85.29 million	($0.46)	-16.52
Color Star Technology	$2.83 million	0.17	-$26.86 million	N/A	N/A

Color Star Technology has lower revenue, but higher earnings than Udemy.

Volatility and Risk

Udemy has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, Color Star Technology has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Udemy and Color Star Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Udemy	0	5	7	0	2.58
Color Star Technology	0	0	0	0	0.00

Udemy presently has a consensus target price of $10.05, indicating a potential upside of 32.18%. Given Udemy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Udemy is more favorable than Color Star Technology.

Institutional and Insider Ownership

79.5% of Udemy shares are owned by institutional investors. Comparatively, 3.4% of Color Star Technology shares are owned by institutional investors. 2.1% of Udemy shares are owned by insiders. Comparatively, 38.9% of Color Star Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Udemy and Color Star Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Udemy	-10.84%	-27.93%	-10.14%
Color Star Technology	N/A	N/A	N/A

About Udemy

Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.

About Color Star Technology

Color Star Technology Co., Ltd., an entertainment and education company, provides online entertainment performances and music education services in the United States and China. The company operates Color World, an online platform of curriculum that includes music, sports, animation, painting and calligraphy, film and television, life skills, etc. Its Color World platform provides celebrity lectures, celebrity concert videos, celebrity peripheral products, and artist interactive communication services. The company was formerly known as Huitao Technology Co., Ltd. and changed its name to Color Star Technology Co., Ltd. in May 2020. The company was founded in 2002 and is based in New York, New York.