Comparing 111 (NASDAQ:YI) and Fulgent Genetics (NASDAQ:FLGT)

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

Volatility & Risk

111 has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

21.3% of 111 shares are held by institutional investors. Comparatively, 48.1% of Fulgent Genetics shares are held by institutional investors. 43.9% of 111 shares are held by company insiders. Comparatively, 36.2% of Fulgent Genetics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for 111 and Fulgent Genetics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
111	1	0	0	0	1.00
Fulgent Genetics	1	2	1	0	2.00

Fulgent Genetics has a consensus price target of $27.50, suggesting a potential upside of 36.68%. Given Fulgent Genetics’ stronger consensus rating and higher possible upside, analysts clearly believe Fulgent Genetics is more favorable than 111.

Profitability

This table compares 111 and Fulgent Genetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
111	-0.76%	N/A	-3.80%
Fulgent Genetics	-26.05%	-4.93%	-4.50%

Valuation & Earnings

This table compares 111 and Fulgent Genetics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
111	$1.80 billion	0.02	-$9.65 million	($1.40)	-2.46
Fulgent Genetics	$323.93 million	1.71	-$60.51 million	($2.82)	-7.13

111 has higher revenue and earnings than Fulgent Genetics. Fulgent Genetics is trading at a lower price-to-earnings ratio than 111, indicating that it is currently the more affordable of the two stocks.

Summary

111 beats Fulgent Genetics on 8 of the 14 factors compared between the two stocks.

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.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.