Soluna (NASDAQ:SLNH – Get Free Report) and Youdao (NYSE:DAO – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Volatility & Risk
Soluna has a beta of 4.26, indicating that its share price is 326% more volatile than the S&P 500. Comparatively, Youdao has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Soluna and Youdao, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Soluna | 1 | 0 | 1 | 0 | 2.00 |
| Youdao | 1 | 0 | 1 | 0 | 2.00 |
Institutional & Insider Ownership
23.2% of Soluna shares are held by institutional investors. Comparatively, 21.9% of Youdao shares are held by institutional investors. 10.1% of Soluna 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.
Earnings and Valuation
This table compares Soluna and Youdao”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Soluna | $29.72 million | 4.30 | -$53.41 million | ($8.86) | -0.13 |
| Youdao | $822.04 million | 1.55 | $14.93 million | $0.13 | 81.88 |
Youdao has higher revenue and earnings than Soluna. Soluna 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 Soluna and Youdao’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Soluna | -179.73% | -71.50% | -32.97% |
| Youdao | 1.81% | -6.41% | 7.16% |
Summary
Youdao beats Soluna on 8 of the 12 factors compared between the two stocks.
About Soluna
Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, 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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