Syntec Optics (NASDAQ:OPTX – Get Free Report) and Youdao (NYSE:DAO – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Volatility and Risk
Syntec Optics has a beta of -0.82, meaning that its stock price is 182% less volatile than the S&P 500. Comparatively, Youdao has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.
Earnings and Valuation
This table compares Syntec Optics and Youdao”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Syntec Optics | $28.08 million | 17.86 | -$1.79 million | ($0.08) | -155.63 |
| Youdao | $822.04 million | 1.80 | $15.35 million | $0.09 | 136.17 |
Youdao has higher revenue and earnings than Syntec Optics. Syntec Optics is trading at a lower price-to-earnings ratio than Youdao, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Syntec Optics and Youdao’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Syntec Optics | -10.95% | -30.86% | -12.35% |
| Youdao | 1.19% | -4.51% | 4.89% |
Analyst Ratings
This is a summary of current ratings for Syntec Optics and Youdao, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Syntec Optics | 1 | 0 | 0 | 0 | 1.00 |
| Youdao | 1 | 0 | 1 | 0 | 2.00 |
Insider & Institutional Ownership
21.9% of Youdao shares are owned by institutional investors. 0.8% of Syntec Optics shares are owned by insiders. Comparatively, 43.0% of Youdao shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Youdao beats Syntec Optics on 12 of the 13 factors compared between the two stocks.
About Syntec Optics
Syntec Optics Holdings, Inc. manufactures and supplies integrated optics for biomedical, defense and military, consumer, and other applications. It offers camera modules; tool design, design for manufacturing, optical and opto-mechanical design, and moldflow analysis; SPDT optics, such as freedom optics, microlens arrays, spheres and aspheres, diffractives, SPDT materials, and optical tooling; replicative molding, that includes polymer and glass molding, and molded production materials; thin film coating and coating curve materials; and precision machining and precision machining materials. The company also provides clean room assembly, such as opto mechanical, opto electronic, and integrated photonics; infrared optics, microlens arrays, software development, and optical metrology, and catalog optics services. In addition, it offers driverless cars, integrated photonics, robotics, sensors, VR and AR, machine vision, facial imagining, heads up display, finger print scanners, and laser scanners technology for consumers; night vision goggles, missile laser guides, biometrics, infrared and thermal imaging, ordnance optics, head mounted displays, 2D and 3D scanners, humvee lighting , laser targeting, protective domes and windows, and lidar technologies for defense and miliary; and medical diagnostic, microfluidics, surgical components and systems, and medical sensing technology for medical sectors. The company was founded in 1981 and is based in Rochester, New York.
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.
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