Critical Survey: Hims & Hers Health (NYSE:HIMS) & 111 (NASDAQ:YI)

111 (NASDAQ:YI) and Hims & Hers Health (NYSE:HIMS) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for 111 and Hims & Hers Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
111	1	0	0	0	1.00
Hims & Hers Health	4	9	3	1	2.06

Hims & Hers Health has a consensus price target of $42.62, suggesting a potential upside of 61.15%. Given Hims & Hers Health’s stronger consensus rating and higher probable upside, analysts clearly believe Hims & Hers Health is more favorable than 111.

Earnings and Valuation

This table compares 111 and Hims & Hers Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
111	$13.58 billion	0.00	-$1.42 million	($0.84)	-8.81
Hims & Hers Health	$1.48 billion	4.08	$126.04 million	$0.54	48.97

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

Volatility & Risk

111 has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500.

Institutional & Insider Ownership

21.3% of 111 shares are held by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are held by institutional investors. 43.9% of 111 shares are held by company insiders. Comparatively, 17.7% of Hims & Hers Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares 111 and Hims & Hers Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
111	-0.52%	N/A	-2.70%
Hims & Hers Health	6.05%	24.67%	9.37%

Summary

Hims & Hers Health beats 111 on 13 of the 15 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 Hims & Hers Health

Hims & Hers Health, Inc. operates a telehealth consultation platform. It connects consumers to healthcare professionals, enabling them to access medical care for mental health, sexual health, dermatology and primary care. The company was founded in 2017 and is headquartered in San Francisco, CA.