Critical Comparison: 111 (NASDAQ:YI) & SBC Medical Group (NASDAQ:SBC)

SBC Medical Group (NASDAQ:SBC) and 111 (NASDAQ:YI) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Risk & Volatility

SBC Medical Group has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, 111 has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SBC Medical Group and 111, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	1	0	2	0	2.33
111	1	0	0	0	1.00

SBC Medical Group currently has a consensus price target of $8.50, indicating a potential upside of 78.95%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, analysts clearly believe SBC Medical Group is more favorable than 111.

Valuation and Earnings

This table compares SBC Medical Group and 111″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$173.61 million	2.81	$50.99 million	$0.47	10.11
111	$1.80 billion	0.02	-$9.65 million	($1.40)	-2.55

SBC Medical Group has higher earnings, but lower revenue than 111. 111 is trading at a lower price-to-earnings ratio than SBC Medical Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

60.8% of SBC Medical Group shares are held by institutional investors. Comparatively, 21.3% of 111 shares are held by institutional investors. 81.7% of SBC Medical Group shares are held by company insiders. Comparatively, 43.9% of 111 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares SBC Medical Group and 111’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBC Medical Group	27.99%	18.47%	13.10%
111	-1.01%	N/A	-4.86%

Summary

SBC Medical Group beats 111 on 12 of the 14 factors compared between the two stocks.

About SBC Medical Group

SBC Medical Group Holdings Incorporated, through its subsidiaries, provides services to support the operation of clinics which deliver specialized medical services in the areas of cosmetic medicine, esthetic dentistry and Androgenetic Alopecia or AGA, primarily in Japan and centered on the SBC Shonan Beauty Clinic Brand. SBC Medical Group Holdings Incorporated, formerly known as Pono Capital Two Inc., is based in TOKYO.

About 111

111, Inc. engages in the provision of pharmaceutical products and medical services through online retail pharmacy and indirectly through offline pharmacy network. It operates through the B2C and B2B segments. The B2C segment engages in the sale of pharmaceutical and other health and wellness products directly to consumers through 1 Drugstore and its offline pharmacies. The B2B segment includes the sale of pharmaceutical products to pharmacy customers through 1 Drug Mall. The company was founded by Gang Yu and Jun Ling Liu in May 2013 and is headquartered in Shanghai, China.