Financial Analysis: Solesence (NASDAQ:SLSN) versus Yatsen (NYSE:YSG)

Yatsen (NYSE:YSG) and Solesence (NASDAQ:SLSN) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Earnings and Valuation

This table compares Yatsen and Solesence”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yatsen	$614.62 million	0.40	-$11.56 million	($0.32)	-8.22
Solesence	$62.06 million	0.97	$1.79 million	($0.03)	-28.30

Solesence has lower revenue, but higher earnings than Yatsen. Solesence is trading at a lower price-to-earnings ratio than Yatsen, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Yatsen and Solesence, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yatsen	1	0	0	0	1.00
Solesence	1	0	0	0	1.00

Profitability

This table compares Yatsen and Solesence’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yatsen	-4.63%	-7.26%	-5.42%
Solesence	-3.40%	-11.58%	-3.79%

Insider and Institutional Ownership

70.2% of Solesence shares are owned by institutional investors. 29.0% of Yatsen shares are owned by company insiders. Comparatively, 4.8% of Solesence shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Yatsen has a beta of -1.54, meaning that its share price is 254% less volatile than the S&P 500. Comparatively, Solesence has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Summary

Solesence beats Yatsen on 7 of the 11 factors compared between the two stocks.

About Yatsen

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.

About Solesence

Nanophase Technologies Corporation provides engineered materials, formulation development, and commercial manufacturing with an integrated family of technologies in the United States. It offers surface engineered zinc oxide and titanium dioxide for sunscreens and personal care products; fully formulated cosmetics, sun care, and skin care under the Solésence brand name; and advanced materials products, such as architectural coatings, industrial coatings, abrasion-resistant additives, plastics additives, medical diagnostics, and various surface finishing technologies applications. The company was incorporated in 1989 and is headquartered in Romeoville, Illinois.