Fluent Inc. (FLNT) Vs. Youdao Inc. (DAO): Which Is Riskier?

Fluent Inc. (NASDAQ: FLNT) shares are 41.20% up in the year-to-date (YTD) period and have moved 13.87% or $0.43 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +246.08% lower. Comparatively, the stock is -9.49% down YTD and 44.67% over the trailing 3-month period. If we look at the shorter duration, its week performance is 54.15% and 95.57% over the month.

Analyst Recommendations

On November 12, 2019, Barrington Research recommended the FLNT stock is a Mkt Perform, while earlier, Canaccord Genuity had Initiated the stock as a Buy on August 26, 2020. 2 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the FLNT stock is a “Moderate Buy. 0 of the 2 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.53 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $5.00. The forecasts give the Fluent Inc. stock a price target range of $5.00 on the higher side while at least one analyst think the stock could plunge to a low of $5.00. The two limits represent an upside potential of 29.4% or 29.4%.

Earnings Forecast

For the current year, earnings should grow to an average of $0.04, up 7.40% from -$0.02 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0 and $0.04. Wall Street estimates earnings per share to be at an average of $0.13 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 16 over the last 12 months, while SEC filings reveal that there have been 0 insider sales over the same period. Insiders have purchases 295,378 shares while those sold by company executives and officers stand at 0. The last 3 months have seen insiders trade a total of 72,256 and 0 in purchases and sales respectively.

Conlin Matthew, a President at the company, bought 8,129 shares worth $20630.0 at $2.54 per share on Aug 14. The Chief Executive Officer had earlier bought another 5,085 FLNT shares valued at $13130.0 on Aug 14. The shares were bought at $2.58 per share. Conlin Matthew (President) bought 14,441 shares at $2.32 per share on Aug 13 for a total of $33531.0 while Schulke Ryan, (Chief Executive Officer) bought 14,915 shares on Aug 13 for $34667.0 with each share fetching $2.32.

Youdao Inc. (NYSE:DAO), on the other hand, is trading around $32.24 with a market cap of $3.71B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $41.04 and spell out a more modest performance – a 21.44% return. Some analysts are even forecasting -$1.34 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Youdao Inc. (DAO) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

DAO’s operating margin was negative on the trailing 12 months basis, remaining steady at -31.30%, while the operating expenses over the recent quarter were at $80.28 million. This represented a 9.0% of the company’s total revenues which amounted $88.22 million.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $331.46 million from $304.77 million over the previous quarter. Short term investments amounted to $235.67 million while total current assets were at $316.93 million. The company’s free cash flow for the quarter was $0.0.

Major holders

Insiders own 5.19% of the company shares, while shares held by institutions stand at 58.80% with a share float percentage of 19.99M. Investors are also buoyed by the number of investors in a company, with Youdao Inc. having a total of 13 institutions that hold shares in the company.