SBC Medical Group (NASDAQ:SBC) versus HealthEquity (NASDAQ:HQY) Head to Head Analysis

SBC Medical Group (NASDAQ:SBC) and HealthEquity (NASDAQ:HQY) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Risk & Volatility

SBC Medical Group has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, HealthEquity has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.

Insider & Institutional Ownership

60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 99.5% of HealthEquity shares are owned by institutional investors. 81.7% of SBC Medical Group shares are owned by insiders. Comparatively, 1.6% of HealthEquity shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares SBC Medical Group and HealthEquity”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$173.61 million	2.57	$50.99 million	$0.47	9.23
HealthEquity	$1.31 billion	5.84	$215.20 million	$2.77	33.45

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

Analyst Ratings

This is a breakdown of current ratings and price targets for SBC Medical Group and HealthEquity, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	1	0	2	0	2.33
HealthEquity	1	1	10	1	2.85

SBC Medical Group currently has a consensus target price of $8.50, indicating a potential upside of 95.85%. HealthEquity has a consensus target price of $111.87, indicating a potential upside of 20.73%. Given SBC Medical Group’s higher probable upside, equities analysts clearly believe SBC Medical Group is more favorable than HealthEquity.

Profitability

This table compares SBC Medical Group and HealthEquity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBC Medical Group	27.99%	18.47%	13.10%
HealthEquity	17.36%	15.33%	9.51%

Summary

HealthEquity beats SBC Medical Group on 9 of the 15 factors compared between the two stocks.

About SBC Medical Group

SBC Medical Group Holdings Incorporated, through its subsidiaries, provides services to support the operation of clinics which deliver specialized medical services in the areas of cosmetic medicine, esthetic dentistry and Androgenetic Alopecia or AGA, primarily in Japan and centered on the SBC Shonan Beauty Clinic Brand. SBC Medical Group Holdings Incorporated, formerly known as Pono Capital Two Inc., is based in TOKYO.

About HealthEquity

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, receive personalized benefit information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves clients through a direct sales force; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.