So-Young International (NASDAQ:SY) and GeneDx (NASDAQ:WGS) Critical Survey

So-Young International (NASDAQ:SY) and GeneDx (NASDAQ:WGS) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for So-Young International and GeneDx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
So-Young International	1	0	1	0	2.00
GeneDx	1	0	7	1	2.89

So-Young International presently has a consensus price target of $5.50, suggesting a potential upside of 94.35%. GeneDx has a consensus price target of $140.71, suggesting a potential upside of 113.33%. Given GeneDx’s stronger consensus rating and higher probable upside, analysts clearly believe GeneDx is more favorable than So-Young International.

Risk and Volatility

So-Young International has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, GeneDx has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
So-Young International	-15.97%	-12.54%	-8.55%
GeneDx	-4.92%	14.73%	8.67%

Earnings and Valuation

This table compares So-Young International and GeneDx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
So-Young International	$217.84 million	1.32	-$34.65 million	($0.33)	-8.58
GeneDx	$427.54 million	4.52	-$21.02 million	($0.75)	-87.95

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

Institutional and Insider Ownership

35.3% of So-Young International shares are held by institutional investors. Comparatively, 61.7% of GeneDx shares are held by institutional investors. 16.7% of So-Young International shares are held by insiders. Comparatively, 29.6% of GeneDx shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

GeneDx beats So-Young International on 13 of the 15 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 GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.