Analyzing SBC Medical Group (NASDAQ:SBC) and DaVita (NYSE:DVA)

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

Earnings & Valuation

This table compares DaVita and SBC Medical Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DaVita	$13.64 billion	0.83	$746.80 million	$12.22	14.55
SBC Medical Group	$173.61 million	2.98	$50.99 million	$0.47	10.69

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DaVita	6.05%	-217.63%	5.07%
SBC Medical Group	27.99%	18.47%	13.10%

Volatility & Risk

DaVita has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, SBC Medical Group has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for DaVita and SBC Medical Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DaVita	0	4	3	0	2.43
SBC Medical Group	0	1	2	0	2.67

DaVita presently has a consensus price target of $233.43, suggesting a potential upside of 31.33%. SBC Medical Group has a consensus price target of $8.50, suggesting a potential upside of 69.15%. Given SBC Medical Group’s stronger consensus rating and higher possible upside, analysts clearly believe SBC Medical Group is more favorable than DaVita.

Institutional and Insider Ownership

90.1% of DaVita shares are held by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are held by institutional investors. 1.9% of DaVita shares are held by company insiders. Comparatively, 81.7% of SBC Medical Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

About DaVita

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.

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.