Financial Contrast: Teads (NASDAQ:TEAD) and So-Young International (NASDAQ:SY)

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

Risk & Volatility

So-Young International has a beta of 2.19, meaning that its stock price is 119% more volatile than the S&P 500. Comparatively, Teads has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
So-Young International	-13.62%	-13.65%	-8.52%
Teads	-73.38%	-222.41%	-9.22%

Valuation & Earnings

This table compares So-Young International and Teads”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
So-Young International	$1.79 billion	0.12	-$34.65 million	($0.34)	-6.03
Teads	$1.30 billion	0.01	-$517.07 million	($5.53)	-0.03

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for So-Young International and Teads, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
So-Young International	1	0	0	0	1.00
Teads	1	1	1	0	2.00

Teads has a consensus target price of $0.40, indicating a potential upside of 120.99%. Given Teads’ stronger consensus rating and higher possible upside, analysts plainly believe Teads is more favorable than So-Young International.

Insider & Institutional Ownership

35.3% of So-Young International shares are owned by institutional investors. Comparatively, 60.4% of Teads shares are owned by institutional investors. 16.7% of So-Young International shares are owned by insiders. Comparatively, 12.0% of Teads shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

So-Young International beats Teads on 9 of the 14 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 Teads

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.