Critical Analysis: NextPlat (NASDAQ:NXPL) vs. Yunji (NASDAQ:YJ)

Yunji (NASDAQ:YJ) and NextPlat (NASDAQ:NXPL) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Profitability

This table compares Yunji and NextPlat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yunji	N/A	N/A	N/A
NextPlat	-14.58%	-34.22%	-25.12%

Institutional & Insider Ownership

1.3% of NextPlat shares are held by institutional investors. 45.3% of Yunji shares are held by insiders. Comparatively, 44.6% of NextPlat 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.

Valuation and Earnings

This table compares Yunji and NextPlat”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yunji	$57.22 million	0.11	-$16.86 million	($3.44)	-0.38
NextPlat	$65.48 million	0.29	-$14.02 million	($0.30)	-2.38

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Yunji and NextPlat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yunji	1	0	0	0	1.00
NextPlat	1	0	0	0	1.00

Risk and Volatility

Yunji has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500. Comparatively, NextPlat has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Summary

NextPlat beats Yunji on 6 of the 11 factors compared between the two stocks.

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.

About NextPlat

NextPlat Corp operates as a healthcare and e-commerce company in Europe, North America, South America, the Asia and Pacific, and Africa. The company operates full-service retail specialty services pharmacies that provides prescription pharmaceuticals prescription pharmaceuticals, third-party administration, risk and data management services, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, contracted pharmacy services, and health practice risk management to healthcare organizations and providers, as well as supplies prescription medications to long-term care facilities. It also offers COVID-19 related diagnostics and vaccinations, and medication adherence packaging; and value-added services, such as prior authorization assistance, same-day home-medication delivery, on site provider consultation services, primary care reporting and analytics, and customized packaging solutions, as well as acquires and leases an e-commerce platform to collaborate with businesses to optimize their ability to sell their goods online. In addition, it operates e-commerce websites, as well as third-party e-commerce storefronts that provides mobile satellite services solutions for satellite-enabled voice, data, personnel and asset tracking, machine-to-machine, and internet of things connectivity services; voice, data communications, internet of things (IoT), and machine-to-machine services; tracking and monitoring solutions and services; satellite communications products; and GPS enabled emergency locator distress beacons. Further, it offers satellite tracking devices used to monitor the location, movements, and history of anything that moves; SolarTrack, a compact, lightweight, IoT tracking device powered by the sun; and GTCTrack, a subscription-based mapping and tracking portal. The company was formerly known as Orbsat Corp. and changed its name to NextPlat Corp in January 2022. NextPlat Corp is based in Coconut Grove, Florida.