Critical Analysis: 111 (NASDAQ:YI) vs. PPJ Enterprise (OTCMKTS:PPJE)

111 (NASDAQ:YI) and PPJ Enterprise (OTCMKTS:PPJE) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Volatility and Risk

111 has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, PPJ Enterprise has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500.

Earnings & Valuation

This table compares 111 and PPJ Enterprise”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
111	$1.80 billion	0.03	-$9.65 million	($1.00)	-5.73
PPJ Enterprise	$670,000.00	0.00	$10,000.00	N/A	N/A

PPJ Enterprise has lower revenue, but higher earnings than 111.

Profitability

This table compares 111 and PPJ Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
111	-0.53%	N/A	-2.72%
PPJ Enterprise	N/A	N/A	N/A

Institutional and Insider Ownership

21.3% of 111 shares are held by institutional investors. 43.9% of 111 shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for 111 and PPJ Enterprise, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
111	1	0	0	0	1.00
PPJ Enterprise	0	0	0	0	0.00

Given PPJ Enterprise’s higher probable upside, analysts clearly believe PPJ Enterprise is more favorable than 111.

Summary

111 beats PPJ Enterprise on 5 of the 9 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 PPJ Enterprise

PPJ Healthcare Enterprises, Inc., through its subsidiaries, provides automated healthcare reimbursement cycle, online health information digital-systems, and practice information management digital-system software to health care providers and general businesses worldwide. The company offers the Automated Biller, a medical billing system that allows physicians to bill their medical insurance claims at the point of service without data entry, coding, or billing personnel. It also provides billing, specialty medical billing, collection, and workers comp lien collection services for health care providers in the areas of pain management, anesthesia and surgery centers practices, and various specialties of medicine. The company was formerly known as PPJ Enterprise and changed its name to PPJ Healthcare Enterprises, Inc. in October 2014. PPJ Healthcare Enterprises, Inc. was founded in 2000 and is headquartered in Reno, Nevada.