Youdao, Inc. Unsponsored ADR (DAO) vs Lincoln Educational Services Corporation (LINC)

Youdao, Inc. Unsponsored ADR and Lincoln Educational Services Corporation are both Education & Training Services companies. Lincoln Educational Services Corporation is the larger, with a market value of $757.5M against $475.4M — 1.6× the size. Lincoln Educational Services Corporation trades at the lower P/E: 30.8× against 73.8×. Lincoln Educational Services Corporation grew revenue faster over the last twelve months: 22.0% against 13.8%. Lincoln Educational Services Corporation has the higher net margin (3.99% vs 2.70%) and the higher return on invested capital (9.83% vs 0.00%). Across the 20 metrics below, Lincoln Educational Services Corporation leads on 17 and Youdao, Inc. Unsponsored ADR on 3.

Valuation

Metric DAO LINC Education & Training Services median
P/E 73.80 30.77 11.19
P/S 1.99 1.23 0.92
P/B n/m 3.47 1.63
Price to free cash flow n/m 28.67 9.62
EV/EBITDA 49.35 11.59 7.02
EV/Sales 2.14 1.25 0.82
Earnings yield 1.36% 3.25% 3.17%
Free cash flow yield (9.54%) 3.49% 2.30%

Profitability

Metric DAO LINC Education & Training Services median
Gross margin 45.18% 59.84% 54.64%
Operating margin 4.33% 5.91% 0.00%
Net margin 2.70% 3.99% 3.29%
Free cash flow margin 0.00% 4.29% 0.00%
Return on equity 0.00% 11.90% 0.00%
Return on assets 8.70% 4.67% 0.00%
Return on invested capital 0.00% 9.83% 0.00%

Growth

Metric DAO LINC Education & Training Services median
Revenue growth (TTM) 13.83% 22.02% 6.97%
EPS growth (last fiscal year) 30.00% 100.00% —
Revenue growth, 5-year CAGR 11.72% 12.07% 4.27%
Net income growth, 5-year CAGR 0.00% (15.78%) 0.00%

Health

Metric DAO LINC Education & Training Services median
Debt to equity (0.93) 0.28 0.08
Current ratio 0.58 0.96 1.33
Net debt to EBITDA 4.35 0.04 (0.15)

Dividend

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

Size

Metric DAO LINC Education & Training Services median
Market cap 475.38m 757.51m 68.93m

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