Aterian (NASDAQ:ATER – Get Free Report) and Zepp Health (NYSE:ZEPP – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Earnings & Valuation
This table compares Aterian and Zepp Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aterian | $68.97 million | 0.08 | -$18.98 million | ($1.99) | -0.28 |
| Zepp Health | $258.90 million | 0.20 | -$40.07 million | ($2.75) | -1.29 |
Institutional and Insider Ownership
7.0% of Aterian shares are held by institutional investors. Comparatively, 52.6% of Zepp Health shares are held by institutional investors. 19.5% of Aterian shares are held by insiders. Comparatively, 36.0% of Zepp Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Aterian and Zepp Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aterian | 1 | 0 | 0 | 0 | 1.00 |
| Zepp Health | 1 | 0 | 1 | 0 | 2.00 |
Zepp Health has a consensus price target of $53.01, indicating a potential upside of 1,391.56%. Given Zepp Health’s stronger consensus rating and higher possible upside, analysts plainly believe Zepp Health is more favorable than Aterian.
Volatility & Risk
Aterian has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.
Profitability
This table compares Aterian and Zepp Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aterian | -49.30% | -92.04% | -47.83% |
| Zepp Health | -15.78% | -19.64% | -7.18% |
Summary
Zepp Health beats Aterian on 11 of the 14 factors compared between the two stocks.
About Aterian
Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.
About Zepp Health
Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.
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