Analyzing So-Young International (NASDAQ:SY) and Phunware (NASDAQ:PHUN)

So-Young International (NASDAQ:SY) and Phunware (NASDAQ:PHUN) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings for So-Young International and Phunware, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
So-Young International	0	0	0	0	N/A
Phunware	0	0	3	0	3.00

Phunware has a consensus target price of $17.33, indicating a potential upside of 392.42%. Given Phunware’s higher probable upside, analysts clearly believe Phunware is more favorable than So-Young International.

Risk and Volatility

So-Young International has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Phunware has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
So-Young International	0.80%	0.48%	0.38%
Phunware	N/A	-438.21%	-127.45%

Valuation & Earnings

This table compares So-Young International and Phunware’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	$1.51 billion	0.06	$3.00 million	$0.02	42.20
Phunware	$4.12 million	7.06	-$52.78 million	N/A	N/A

So-Young International has higher revenue and earnings than Phunware.

Insider & Institutional Ownership

35.3% of So-Young International shares are held by institutional investors. Comparatively, 7.6% of Phunware shares are held by institutional investors. 16.7% of So-Young International shares are held by insiders. Comparatively, 1.2% of Phunware shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

So-Young International beats Phunware on 7 of the 11 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 Phunware

Phunware, Inc., together with its subsidiaries, provides integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include mobile software and application transaction solutions comprise integration of software development kit (SDK) licenses, which consists of analytics that offers data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging, which enables brands to send messages; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services, such as mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It is also involved in the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; and provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications, as well as application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization. Phunware, Inc. was founded in 2009 and is headquartered in Austin, Texas.