TripAdvisor (NASDAQ:TRIP) vs. So-Young International (NASDAQ:SY) Critical Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
So-Young International	-13.62%	-13.65%	-8.52%
TripAdvisor	0.28%	4.23%	1.04%

Institutional and Insider Ownership

35.3% of So-Young International shares are owned by institutional investors. Comparatively, 99.0% of TripAdvisor shares are owned by institutional investors. 16.7% of So-Young International shares are owned by company insiders. Comparatively, 2.0% of TripAdvisor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

So-Young International has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, TripAdvisor has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for So-Young International and TripAdvisor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
So-Young International	1	0	0	0	1.00
TripAdvisor	5	6	4	0	1.93

TripAdvisor has a consensus price target of $14.04, suggesting a potential upside of 45.70%. Given TripAdvisor’s stronger consensus rating and higher possible upside, analysts clearly believe TripAdvisor is more favorable than So-Young International.

Earnings & Valuation

This table compares So-Young International and TripAdvisor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
So-Young International	$217.84 million	1.06	-$34.65 million	($0.34)	-6.66
TripAdvisor	$1.89 billion	0.60	$40.00 million	$0.01	963.50

TripAdvisor has higher revenue and earnings than So-Young International. So-Young International is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.

Summary

TripAdvisor beats So-Young International on 11 of the 14 factors compared between the two stocks.

About So-Young International

So-Young International Inc. operates an online platform for consumption healthcare services in the People's Republic of China. The company offers So-Young Mobile App that offers users medical aesthetic knowledge and experience to reach an informed medical aesthetic treatment decision and make reservations for treatment with medical professionals and medical aesthetic institutions; So-Young Beauty which provides similar interfaces and functions as the mobile app, as well as serves as additional access points to the platform; and medical aesthetic community content through its website soyoung.com. It provides content in various media formats on its online platform generated by users, including professional generated, content from in-house editorial team that shares opinions on specific new medical procedures and trends; user generated content comprising Beauty Diaries that provides details about medical institution, doctor, price, and other information on the treatment; professional user generated, contents from the medical aesthetic influencers; and doctor generated, content from doctors to generate knowledge. In addition, the company offers consumption healthcare services, including dermatology, dentistry and orthodontics, physical examinations, gynecology, and postnatal care; reservation services; and software as a service. Further, it engages in research and development, production, sales, and agency of laser and other optoelectronic medical beauty equipment; manufacture and sells light therapy device, surgical laser device and other equipment; internet information and technology advisory; online medical treatment and consultation; management consulting; internet culture; micro finance services, as well as sells cosmetics products. The company was founded in 2013 and is headquartered in Beijing, China.

About TripAdvisor

TripAdvisor, Inc. operates as an online travel company, primarily engages in the provision of travel guidance products and services worldwide. The company operates in three segments: Brand Tripadvisor, Viator, and TheFork. The Brand Tripadvisor segment offers travel guidance platforms for travelers to discover, generate, and share authentic user-generated content in the form of ratings and reviews for destinations, points-of-interest, experiences, accommodations, restaurants, and cruises. The Viator's segment provides pure-play experiences online travel agency that comprehensive and connecting travelers to discover and book tours, activities, and attractions from experience operators. TheFork segment provides an online marketplace that enables diners to discover and book online reservations at restaurants. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts. Tripadvisor, Inc. is a subsidiary of Liberty TripAdvisor Holdings, Inc.