Youdao (NYSE:DAO – Get Free Report) and KinderCare Learning Companies (NYSE:KLC – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
21.9% of Youdao shares are held by institutional investors. 43.0% of Youdao shares are held by insiders. Comparatively, 5.8% of KinderCare Learning Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Youdao and KinderCare Learning Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Youdao | 1 | 0 | 1 | 0 | 2.00 |
| KinderCare Learning Companies | 4 | 5 | 1 | 0 | 1.70 |
Profitability
This table compares Youdao and KinderCare Learning Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Youdao | 1.19% | -4.51% | 4.89% |
| KinderCare Learning Companies | -17.23% | 6.65% | 1.21% |
Valuation & Earnings
This table compares Youdao and KinderCare Learning Companies”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Youdao | $6.01 billion | 0.36 | $15.35 million | $0.09 | 197.33 |
| KinderCare Learning Companies | $2.73 billion | 0.12 | -$112.88 million | ($3.98) | -0.70 |
Youdao has higher revenue and earnings than KinderCare Learning Companies. KinderCare Learning Companies is trading at a lower price-to-earnings ratio than Youdao, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Youdao has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, KinderCare Learning Companies has a beta of 4, meaning that its share price is 300% more volatile than the S&P 500.
Summary
Youdao beats KinderCare Learning Companies on 10 of the 13 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 KinderCare Learning Companies
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KinderCare Learning Companies Inc. is a provider of high-quality early childhood education by center capacity. KinderCare Learning Companies Inc. is based in PORTLAND, Ore.
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