Analyzing iRhythm Technologies (NASDAQ:IRTC) and 111 (NASDAQ:YI)

iRhythm Technologies (NASDAQ:IRTC) and 111 (NASDAQ:YI) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Earnings and Valuation

This table compares iRhythm Technologies and 111″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRhythm Technologies	$591.84 million	7.22	-$113.29 million	($3.14)	-42.65
111	$1.97 billion	0.03	-$1.42 million	($0.64)	-11.56

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

Profitability

This table compares iRhythm Technologies and 111’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-15.90%	-101.04%	-9.55%
111	-0.48%	N/A	-2.45%

Insider and Institutional Ownership

21.3% of 111 shares are held by institutional investors. 0.7% of iRhythm Technologies shares are held by company insiders. Comparatively, 43.9% of 111 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

iRhythm Technologies has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, 111 has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for iRhythm Technologies and 111, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	0	1	9	0	2.90
111	0	0	0	0	0.00

iRhythm Technologies currently has a consensus target price of $137.30, suggesting a potential upside of 2.52%. Given iRhythm Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe iRhythm Technologies is more favorable than 111.

Summary

111 beats iRhythm Technologies on 9 of the 14 factors compared between the two stocks.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.

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.