Head to Head Survey: Youdao (NYSE:DAO) versus Visionary (NASDAQ:GV)

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

Earnings & Valuation

This table compares Youdao and Visionary’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Youdao	$762.52 million	0.58	-$77.43 million	($0.63)	-5.59
Visionary	$8.43 million	0.70	-$3.47 million	N/A	N/A

Visionary has lower revenue, but higher earnings than Youdao.

Volatility & Risk

Youdao has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, Visionary has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.

Insider and Institutional Ownership

21.9% of Youdao shares are owned by institutional investors. Comparatively, 0.7% of Visionary shares are owned by institutional investors. 43.0% of Youdao shares are owned by insiders. Comparatively, 9.2% of Visionary 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.

Analyst Ratings

This is a summary of recent recommendations for Youdao and Visionary, as provided by MarketBeat.

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

Youdao currently has a consensus target price of $4.60, suggesting a potential upside of 30.68%. Given Youdao’s higher probable upside, research analysts plainly believe Youdao is more favorable than Visionary.

Profitability

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

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

Summary

Visionary 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 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.