Critical Comparison: 111 (NASDAQ:YI) vs. Butterfly Network (NYSE:BFLY)

111 (NASDAQ:YI) and Butterfly Network (NYSE:BFLY) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Earnings & Valuation

This table compares 111 and Butterfly Network”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	0.02	-$9.65 million	($1.40)	-2.91
Butterfly Network	$97.61 million	22.97	-$77.06 million	($0.30)	-29.35

111 has higher revenue and earnings than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than 111, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

21.3% of 111 shares are held by institutional investors. Comparatively, 37.9% of Butterfly Network shares are held by institutional investors. 43.9% of 111 shares are held by insiders. Comparatively, 22.0% of Butterfly Network shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

111 has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500.

Profitability

This table compares 111 and Butterfly Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
111	-0.76%	N/A	-3.80%
Butterfly Network	-73.63%	-34.41%	-23.91%

Analyst Ratings

This is a breakdown of recent ratings for 111 and Butterfly Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
111	1	0	0	0	1.00
Butterfly Network	1	2	3	0	2.33

Butterfly Network has a consensus target price of $5.56, indicating a potential downside of 36.82%. Given Butterfly Network’s stronger consensus rating and higher probable upside, analysts plainly believe Butterfly Network is more favorable than 111.

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 Butterfly Network

Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.