Analyzing Youdao (NYSE:DAO) and Golden Sun Health Technology Group (NASDAQ:GSUN)

Youdao (NYSE:DAO) and Golden Sun Health Technology Group (NASDAQ:GSUN) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Risk & Volatility

Youdao has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500. Comparatively, Golden Sun Health Technology Group has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500.

Valuation & Earnings

This table compares Youdao and Golden Sun Health Technology Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Youdao	$5.73 billion	0.06	-$77.46 million	($0.38)	-8.03
Golden Sun Health Technology Group	$6.16 million	2.51	-$5.79 million	N/A	N/A

Golden Sun Health Technology Group has lower revenue, but higher earnings than Youdao.

Analyst Ratings

This is a breakdown of current recommendations for Youdao and Golden Sun Health Technology Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Youdao	0	1	0	0	2.00
Golden Sun Health Technology Group	0	0	0	0	N/A

Youdao presently has a consensus target price of $4.60, indicating a potential upside of 50.82%. Given Youdao’s higher probable upside, research analysts plainly believe Youdao is more favorable than Golden Sun Health Technology Group.

Profitability

This table compares Youdao and Golden Sun Health Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Youdao	-2.28%	N/A	-5.59%
Golden Sun Health Technology Group	N/A	N/A	N/A

Institutional and Insider Ownership

21.9% of Youdao shares are held by institutional investors. Comparatively, 0.1% of Golden Sun Health Technology Group shares are held by institutional investors. 43.0% of Youdao shares are held by insiders. Comparatively, 38.9% of Golden Sun Health Technology Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Golden Sun Health Technology Group beats Youdao on 5 of the 9 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 Golden Sun Health Technology Group

Golden Sun Health Technology Group Limited, through its subsidiaries, provides education and management services in the People's Republic of China. The company offers foreign language tutorial services; and TOEFL, IELTS, and school and college entrance examination training, as well as other education training management services. It also provides minor language purchase service courses; and develops an artificial intelligent teaching platform. In addition, the company offers educational management and consulting services, including branding, safety management, teacher training, supervision and evaluation, rating guidance services to the kindergartens. Further, it operates tutorial centers in Wenzhou city, Hangzhou city, Zhejiang province, and Shanghai City in China. The company was formerly known as Golden Sun Education Group Limited and changed its name to Golden Sun Education Group Limited in February 2024. Golden Sun Health Technology Group Limited was founded in 1997 and is based in Shanghai, China.