NantHealth (NASDAQ:NH) versus So-Young International (NASDAQ:SY) Critical Review

NantHealth (NASDAQ:NH) and So-Young International (NASDAQ:SY) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

4.8% of NantHealth shares are held by institutional investors. Comparatively, 24.0% of So-Young International shares are held by institutional investors. 59.6% of NantHealth shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares NantHealth and So-Young International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NantHealth -60.94% N/A -32.31%
So-Young International 5.84% 2.59% 2.13%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for NantHealth and So-Young International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NantHealth 0 0 0 0 N/A
So-Young International 0 1 4 0 2.80

So-Young International has a consensus price target of $14.00, suggesting a potential upside of 20.79%. Given So-Young International’s higher possible upside, analysts plainly believe So-Young International is more favorable than NantHealth.

Earnings & Valuation

This table compares NantHealth and So-Young International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NantHealth $95.96 million 3.93 -$62.76 million ($0.57) -5.95
So-Young International $165.42 million 7.15 $25.38 million N/A N/A

So-Young International has higher revenue and earnings than NantHealth.

Volatility and Risk

NantHealth has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, So-Young International has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Summary

So-Young International beats NantHealth on 10 of the 12 factors compared between the two stocks.

About NantHealth

NantHealth, Inc., together with its subsidiaries, operates as a healthcare technology company converging science and technology in the United States, the United Kingdom, Singapore, and Canada. It provides NantHealth solutions, including molecular profiling solutions, software-as-a-service platforms, and connected care medical device interoperability solutions to enable value-based care and evidence-based clinical practice. The company's products include GPS Cancer, a molecular profile that integrates whole genome/exome sequencing of tumor and normal germline samples, as well as whole transcriptome sequencing; GPS Cancer Report, a GPS cancer solution; Liquid GPS, a blood-based molecular laboratory test that provides a tool for noninvasive tumor profiling and quantitative monitoring of treatment response; and Eviti, a decision support solution that provides evidence-based clinical decision support. It also offers web-based and mobile software solutions, such as Device Connectivity Suite, a device connectivity and near real-time biometric software and hardware suite to aggregate data from in-hospital and remote medical devices. In addition, NantHealth, Inc. provides NaviNet Open, a payer-provider collaboration platform comprising plan central, eligibility and benefit, claims status inquiry, claims management, referral, authorization, and document exchange, as well as AllPayer Access services; and systems infrastructure solutions, which include cloud computing, storage, and transport infrastructure. The company was formerly known as Nant Health, LLC and changed its name to NantHealth, Inc. in June 2016. The company was founded in 2010 and is headquartered in Culver City, California. NantHealth, Inc. is as a subsidiary of NantWorks, LLC.

About So-Young International

So-Young International Inc. operates an online platform for medical aesthetics and consumption healthcare services focusing on discretionary medical treatments. Its platform enables users to discover content and share their own experience on medical aesthetics procedures, and leads users to reserve treatment services from medical aesthetic service providers for offline treatment in the People's Republic of China and internationally. The company facilitates research on medical aesthetic treatment trends; ratings and reviews on treatment experiences; and blogs under the name Beauty Diaries. It also provides reservation services in the areas of dermatology, dentistry and orthodontics, ophthalmology, physical examinations, gynecology, human papilloma virus vaccines, and postnatal care; Software as a Service; and guiding and consulting services through training programs for medical service providers. As of December 31, 2019, the company had approximately 6,100 medical aesthetic service providers and 2,600 other consumption healthcare service providers on its platform. So-Young International Inc. was founded in 2013 and is headquartered in Beijing, China.

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