Beachbody (NASDAQ:BODI) vs. Youdao (NYSE:DAO) Head to Head Review

Beachbody (NASDAQ:BODI) and Youdao (NYSE:DAO) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

74.5% of Beachbody shares are held by institutional investors. Comparatively, 21.9% of Youdao shares are held by institutional investors. 42.4% of Beachbody shares are held by insiders. Comparatively, 43.0% of Youdao shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Beachbody	5.68%	44.34%	9.87%
Youdao	2.71%	-8.46%	8.78%

Analyst Ratings

This is a summary of current recommendations and price targets for Beachbody and Youdao, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beachbody	1	2	3	0	2.33
Youdao	0	1	1	0	2.50

Beachbody currently has a consensus target price of $14.33, indicating a potential upside of 204.32%. Youdao has a consensus target price of $22.00, indicating a potential upside of 24.43%. Given Beachbody’s higher possible upside, analysts clearly believe Beachbody is more favorable than Youdao.

Volatility & Risk

Beachbody has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Youdao has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Beachbody and Youdao”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beachbody	$251.73 million	0.14	-$2.86 million	$1.63	2.89
Youdao	$822.04 million	2.59	$15.35 million	$0.20	88.41

Youdao has higher revenue and earnings than Beachbody. Beachbody is trading at a lower price-to-earnings ratio than Youdao, indicating that it is currently the more affordable of the two stocks.

Summary

Beachbody beats Youdao on 8 of the 14 factors compared between the two stocks.

About Beachbody

The Beachbody Company, Inc. operates as a subscription health and wellness company that provides fitness, nutrition, and stress-reducing programs in the United States and internationally. The company operates Beachbody on Demand, a digital subscription platform that provides access to a library of live and on-demand fitness and nutrition content; and Beachbody on Demand Interactive (BODi) for live fitness and nutrition programs. It also offers nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recover, and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; supplements under the LADDER brand; connected fitness products; and BODi Bike Studio, a package subscription to BODi with a bike and accessories. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.

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.