Head to Head Analysis: Udemy (NASDAQ:UDMY) versus Color Star Technology (NASDAQ:ADD)

Udemy (NASDAQ:UDMY) and Color Star Technology (NASDAQ:ADD) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

79.5% of Udemy shares are owned by institutional investors. Comparatively, 3.4% of Color Star Technology shares are owned by institutional investors. 2.1% of Udemy shares are owned by company insiders. Comparatively, 38.9% of Color Star Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Udemy and Color Star Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Udemy	$790.02 million	1.45	-$85.29 million	($0.46)	-16.72
Color Star Technology	$2.83 million	0.17	-$26.86 million	N/A	N/A

Color Star Technology has lower revenue, but higher earnings than Udemy.

Volatility and Risk

Udemy has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Color Star Technology has a beta of 2.44, indicating that its share price is 144% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Udemy and Color Star Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Udemy	1	4	7	0	2.50
Color Star Technology	0	0	0	0	0.00

Udemy currently has a consensus target price of $9.86, suggesting a potential upside of 28.27%. Given Udemy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Udemy is more favorable than Color Star Technology.

Profitability

This table compares Udemy and Color Star Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Udemy	-10.84%	-27.93%	-10.14%
Color Star Technology	N/A	N/A	N/A

About Udemy

Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.

About Color Star Technology

Color Star Technology Co., Ltd., an entertainment and education company, provides online entertainment performances and music education services in the United States and China. The company operates Color World, an online platform of curriculum that includes music, sports, animation, painting and calligraphy, film and television, life skills, etc. Its Color World platform provides celebrity lectures, celebrity concert videos, celebrity peripheral products, and artist interactive communication services. The company was formerly known as Huitao Technology Co., Ltd. and changed its name to Color Star Technology Co., Ltd. in May 2020. The company was founded in 2002 and is based in New York, New York.