Youdao (NYSE:DAO) vs. Visionary (NASDAQ:GV) Critical Analysis

Visionary (NASDAQ:GV) and Youdao (NYSE:DAO) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Visionary and Youdao, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Visionary	0	0	0	0	N/A
Youdao	0	1	0	0	2.00

Youdao has a consensus target price of $4.60, suggesting a potential upside of 28.13%. Given Youdao’s higher possible upside, analysts plainly believe Youdao is more favorable than Visionary.

Volatility & Risk

Visionary has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Youdao has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.

Earnings & Valuation

This table compares Visionary and Youdao’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Visionary	$8.43 million	1.26	-$3.47 million	N/A	N/A
Youdao	$762.52 million	0.59	-$77.46 million	($0.63)	-5.70

Visionary has higher earnings, but lower revenue than Youdao.

Insider & Institutional Ownership

0.7% of Visionary shares are owned by institutional investors. Comparatively, 21.9% of Youdao shares are owned by institutional investors. 9.2% of Visionary shares are owned by insiders. Comparatively, 43.0% of Youdao shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Visionary	N/A	N/A	N/A
Youdao	-10.22%	N/A	-30.27%

Summary

Visionary beats Youdao on 5 of the 9 factors compared between the two stocks.

About Visionary

Visionary Holdings Inc. provides private online and in person educational programs and services to Canadian and international students that reside in Canada and internationally. The company's educational programs include Ontario secondary school diploma, career-oriented two-year college and four-year university diploma programs, vocational education programs, and master programs. It also provides educational services, such as immigration and study visa, student housing, career guidance, internship, and entrepreneurship guidance. The company was formerly known as Visionary Education Technology Holdings Group Inc. and changed its name to Visionary Holdings Inc. in February 2024. The company was incorporated in 2013 and is headquartered in Toronto, Canada. Visionary Holdings Inc. operates as a subsidiary of 3888 Investment Group Limited.

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.