So-Young International (NASDAQ:SY) & TELUS International (Cda) (NYSE:TIXT) Head-To-Head Comparison

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

Profitability

This table compares TELUS International (Cda) and So-Young International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS International (Cda)	2.54%	11.67%	4.86%
So-Young International	0.80%	0.48%	0.38%

Valuation and Earnings

This table compares TELUS International (Cda) and So-Young International’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS International (Cda)	$2.71 billion	0.23	$54.00 million	$0.15	39.53
So-Young International	$210.99 million	0.51	$3.00 million	$0.02	52.03

TELUS International (Cda) has higher revenue and earnings than So-Young International. TELUS International (Cda) 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.

Risk and Volatility

TELUS International (Cda) has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, So-Young International has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Insider & Institutional Ownership

59.6% of TELUS International (Cda) shares are held by institutional investors. Comparatively, 35.3% of So-Young International shares are held by institutional investors. 4.8% of TELUS International (Cda) shares are held by insiders. Comparatively, 16.7% of So-Young International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for TELUS International (Cda) and So-Young International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS International (Cda)	0	9	5	0	2.36
So-Young International	0	0	0	0	N/A

TELUS International (Cda) presently has a consensus price target of $12.83, suggesting a potential upside of 116.41%. Given TELUS International (Cda)’s higher possible upside, analysts clearly believe TELUS International (Cda) is more favorable than So-Young International.

Summary

TELUS International (Cda) beats So-Young International on 9 of the 13 factors compared between the two stocks.

About TELUS International (Cda)

TELUS International (Cda) Inc. design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection. It also offers IT lifecycle services comprising cloud platform solutions, managed IT services, application development and management, quality assurance and testing, system operations, IT service desk, internet of things, engineering solutions, and enterprise platform services; advisory services consists of digital strategy, CX process consulting, data and customer analytics, workforce management, learning excellence solutions, and business and process transformation; back office and automation solutions, such as robotic process automation, talent acquisition, finance and accounting, and supply chain management; and trust, safety, and security services, including content moderation and social media community management, and fraud prevention and detection. In addition, the company provides AI data solutions comprising data collection and creation, data annotation, data validation and relevance, and linguistic annotation for video, audio, text, image, and geographical data, as well as 3D sensor fusion. It serves technology and gaming, communications and media, ecommerce, financial services and financial technology, healthcare, travel and hospitality, and automotive industries. The company was founded in 2005 and is headquartered in Vancouver, Canada. TELUS International (Cda) Inc. operates as a subsidiary of TELUS Communications Inc.

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.