Comparing American Well (NYSE:AMWL) & 111 (NASDAQ:YI)

111 (NASDAQ:YI) and American Well (NYSE:AMWL) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Earnings & Valuation

This table compares 111 and American Well”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
111	$1.97 billion	0.02	-$1.42 million	($0.84)	-4.52
American Well	$265.02 million	0.26	-$208.14 million	($7.20)	-0.59

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

Institutional & Insider Ownership

21.3% of 111 shares are held by institutional investors. Comparatively, 56.0% of American Well shares are held by institutional investors. 43.9% of 111 shares are held by insiders. Comparatively, 11.8% of American Well shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for 111 and American Well, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
111	1	0	0	0	1.00
American Well	1	6	1	0	2.00

American Well has a consensus target price of $8.33, suggesting a potential upside of 97.29%. Given American Well’s stronger consensus rating and higher possible upside, analysts clearly believe American Well is more favorable than 111.

Volatility and Risk

111 has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, American Well has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares 111 and American Well’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
111	-0.52%	N/A	-2.72%
American Well	-42.80%	-39.80%	-29.38%

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 American Well

American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.