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DAO vs LINC

DAO
Youdao, Inc.
BEARISH
Price
$10.95
Market Cap
$1.32B
Sector
Consumer Defensive
AI Confidence
90%
LINC
Lincoln Educational Services Corporation
NEUTRAL
Price
$40.86
Market Cap
$1.3B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
DAO
84.23
LINC
63.84
Forward P/E
DAO
27.86
LINC
38.37
P/B Ratio
DAO
-4.49
LINC
6.47
P/S Ratio
DAO
0.22
LINC
2.51
EV/EBITDA
DAO
10.09
LINC
29.67

Profitability

Gross Margin
DAO
44.29%
LINC
60.37%
Operating Margin
DAO
3.85%
LINC
11.81%
Profit Margin
DAO
1.82%
LINC
3.86%
ROE
DAO
--
LINC
10.58%
ROA
DAO
7.3%
LINC
3.9%

Growth

Revenue Growth
DAO
16.8%
LINC
19.7%
Earnings Growth
DAO
-42.4%
LINC
87.1%

Financial Health

Debt/Equity
DAO
--
LINC
1.02
Current Ratio
DAO
0.59
LINC
0.86
Quick Ratio
DAO
0.49
LINC
0.75

Dividends

Dividend Yield
DAO
--
LINC
--
Payout Ratio
DAO
0.0%
LINC
0.0%

AI Verdict

DAO BEARISH

DAO exhibits severe financial instability, highlighted by a weak Piotroski F-Score of 3/9 and a critical lack of liquidity. The company is trading at a massive premium to its growth-based intrinsic value of $0.91, with a current price of $10.95. Most alarming is the negative Price-to-Book ratio (-4.49), indicating negative shareholders' equity, coupled with a Current Ratio of 0.59 that suggests an inability to cover short-term obligations. While revenue growth remains positive, the sharp decline in earnings growth (-42.40%) and bearish technical trends signal significant downside risk.

Strengths
Consistent year-over-year revenue growth of 16.80%
Strong gross margins at 44.29%
Low Price-to-Sales ratio (0.22) suggesting undervalued revenue streams
Risks
Negative shareholders' equity (Price/Book: -4.49)
Severe liquidity risk with a Current Ratio of 0.59 and Quick Ratio of 0.49
Extreme overvaluation relative to intrinsic value ($10.95 vs $0.91)
LINC NEUTRAL

LINC presents a dichotomy between explosive growth and severe overvaluation, anchored by a stable but mediocre Piotroski F-Score of 4/9. While the company boasts exceptional earnings growth (87.1% YoY) and a consistent track record of beating estimates, it trades at a massive premium to its Graham Number ($9.54) and Intrinsic Value ($18.88). Liquidity is a concern with a current ratio of 0.86, and heavy insider selling suggests a lack of confidence at current price levels despite the 'strong_buy' analyst consensus.

Strengths
Exceptional earnings growth of 87.1% YoY
Strong revenue growth trajectory (19.7% YoY)
High gross margins of 60.37%
Risks
Severe valuation gap between current price ($40.86) and intrinsic value ($18.88)
Liquidity risk indicated by a current ratio below 1.0 (0.86)
Aggressive insider selling totaling $16.84M in the last 6 months

Compare Another Pair

DAO vs LINC: Head-to-Head Comparison

This page compares Youdao, Inc. (DAO) and Lincoln Educational Services Corporation (LINC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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