Financial Analysis: Option Care Health (NASDAQ:OPCH) and 111 (NASDAQ:YI)

111 (NASDAQ:YI) and Option Care Health (NASDAQ:OPCH) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares 111 and Option Care Health”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	($1.60)	-2.30
Option Care Health	$5.65 billion	0.61	$207.59 million	$1.33	17.22

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

Risk & Volatility

111 has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Option Care Health has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for 111 and Option Care Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
111	1	0	0	0	1.00
Option Care Health	0	7	7	0	2.50

Option Care Health has a consensus target price of $29.92, suggesting a potential upside of 30.67%. Given Option Care Health’s stronger consensus rating and higher possible upside, analysts clearly believe Option Care Health is more favorable than 111.

Profitability

This table compares 111 and Option Care Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
111	-1.01%	N/A	-4.86%
Option Care Health	3.68%	18.74%	7.25%

Insider and Institutional Ownership

21.3% of 111 shares are held by institutional investors. Comparatively, 98.0% of Option Care Health shares are held by institutional investors. 43.9% of 111 shares are held by company insiders. Comparatively, 1.7% of Option Care Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Option Care Health beats 111 on 12 of the 14 factors compared between the two stocks.

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 Option Care Health

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.