Critical Analysis: So-Young International (NASDAQ:SY) and Agent Information Software (OTCMKTS:AIFS)

So-Young International (NASDAQ:SY) and Agent Information Software (OTCMKTS:AIFS) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Valuation & Earnings

This table compares So-Young International and Agent Information Software”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
So-Young International	$1.49 billion	0.07	$3.00 million	$0.05	17.20
Agent Information Software	$5.41 million	1.06	$200,000.00	$0.04	31.00

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

Risk and Volatility

So-Young International has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Agent Information Software has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for So-Young International and Agent Information Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
So-Young International	0	1	0	0	2.00
Agent Information Software	0	0	0	0	0.00

So-Young International presently has a consensus price target of $0.80, indicating a potential downside of 6.99%. Given So-Young International’s stronger consensus rating and higher possible upside, equities research analysts clearly believe So-Young International is more favorable than Agent Information Software.

Insider and Institutional Ownership

35.3% of So-Young International shares are owned by institutional investors. Comparatively, 0.8% of Agent Information Software shares are owned by institutional investors. 16.7% of So-Young International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
So-Young International	2.41%	1.41%	1.11%
Agent Information Software	3.62%	N/A	N/A

Summary

So-Young International beats Agent Information Software on 10 of the 13 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 Agent Information Software

Agent Information Software, Inc., together with its subsidiaries, provides software products and services used to create, manage, publish, and access information content via Internet or Web. It offers its software products and services to customers in the library community in the United States and Canada. The company was founded in 1950 and is headquartered in Rancho Cucamonga, California.