Critical Analysis: Zepp Health (ZEPP) versus The Competition

Zepp Health (NYSE:ZEPP) is one of 60 publicly-traded companies in the “MEDICAL INFO SYS” industry, but how does it contrast to its competitors? We will compare Zepp Health to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Risk & Volatility

Zepp Health has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Zepp Health’s competitors have a beta of 1.84, indicating that their average stock price is 84% more volatile than the S&P 500.

Profitability

This table compares Zepp Health and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zepp Health	-44.54%	-23.60%	-11.98%
Zepp Health Competitors	-194.24%	-97.38%	-20.44%

Analyst Recommendations

This is a summary of recent ratings and target prices for Zepp Health and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zepp Health	0	0	1	0	3.00
Zepp Health Competitors	252	737	1822	23	2.57

Zepp Health currently has a consensus target price of $13.87, suggesting a potential upside of 445.20%. As a group, “MEDICAL INFO SYS” companies have a potential upside of 23.62%. Given Zepp Health’s stronger consensus rating and higher probable upside, analysts clearly believe Zepp Health is more favorable than its competitors.

Institutional & Insider Ownership

52.6% of Zepp Health shares are owned by institutional investors. Comparatively, 42.3% of shares of all “MEDICAL INFO SYS” companies are owned by institutional investors. 36.0% of Zepp Health shares are owned by insiders. Comparatively, 18.4% of shares of all “MEDICAL INFO SYS” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Zepp Health and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zepp Health	$182.60 million	-$75.73 million	-0.51
Zepp Health Competitors	$418.70 million	-$61.27 million	5.96

Zepp Health’s competitors have higher revenue and earnings than Zepp Health. Zepp Health is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Zepp Health beats its competitors on 8 of the 13 factors compared.

Zepp Health Company Profile

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.