Youdao, Inc. Unsponsored ADR (DAO) vs KinderCare Learning Companies, Inc. (KLC)

Youdao, Inc. Unsponsored ADR and KinderCare Learning Companies, Inc. are both Education & Training Services companies. Youdao, Inc. Unsponsored ADR is the larger, with a market value of $475.4M against $260.7M — 1.8× the size. KinderCare Learning Companies, Inc. has negative trailing earnings, so its P/E is not meaningful; Youdao, Inc. Unsponsored ADR trades at 73.8×. Youdao, Inc. Unsponsored ADR grew revenue faster over the last twelve months: 13.8% against 1.79%. Youdao, Inc. Unsponsored ADR has the higher net margin (2.70% vs −17.2%) and the higher return on invested capital (0.00% vs −20.9%). Across the 16 metrics below, Youdao, Inc. Unsponsored ADR leads on 11 and KinderCare Learning Companies, Inc. on 5.

Valuation

Metric DAO KLC Education & Training Services median
P/E 73.80 n/m 11.19
P/S 1.99 0.09 0.92
P/B n/m 0.54 1.63
Price to free cash flow n/m 3.11 9.62
EV/EBITDA 49.35 n/m 7.02
EV/Sales 2.14 0.37 0.82
Earnings yield 1.36% (187.74%) 3.17%
Free cash flow yield (9.54%) 32.21% 2.30%

Profitability

Metric DAO KLC Education & Training Services median
Gross margin 45.18% 19.17% 54.64%
Operating margin 4.33% (14.89%) 0.00%
Net margin 2.70% (17.23%) 3.29%
Free cash flow margin 0.00% 2.97% 0.00%
Return on equity 0.00% (67.78%) 0.00%
Return on assets 8.70% (13.10%) 0.00%
Return on invested capital 0.00% (20.89%) 0.00%

Growth

Metric DAO KLC Education & Training Services median
Revenue growth (TTM) 13.83% 1.79% 6.97%
EPS growth (last fiscal year) 30.00% 1.04% —
Revenue growth, 5-year CAGR 11.72% — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric DAO KLC Education & Training Services median
Debt to equity (0.93) 1.99 0.08
Current ratio 0.58 0.75 1.33
Net debt to EBITDA 4.35 7.22 (0.15)

Dividend

Metric DAO KLC Education & Training Services median
Dividend yield — — 1.13%
Payout ratio 0.00 — 0.00

Size

Metric DAO KLC Education & Training Services median
Market cap 475.38m 260.74m 68.93m

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