Head-To-Head Analysis: SBC Medical Group (NASDAQ:SBC) vs. Community Health Systems (NYSE:CYH)

SBC Medical Group (NASDAQ:SBC) and Community Health Systems (NYSE:CYH) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$175.17 million	2.42	$50.99 million	$0.47	8.77
Community Health Systems	$11.98 billion	0.03	$509.00 million	$1.85	1.56

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

Profitability

This table compares SBC Medical Group and Community Health Systems’ 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%
Community Health Systems	2.10%	-6.66%	0.62%

Insider & Institutional Ownership

60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 85.0% of Community Health Systems shares are owned by institutional investors. 81.7% of SBC Medical Group shares are owned by company insiders. Comparatively, 11.1% of Community Health Systems shares are owned 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.

Risk & Volatility

SBC Medical Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Community Health Systems has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for SBC Medical Group and Community Health Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	1	0	2	0	2.33
Community Health Systems	3	3	1	0	1.71

SBC Medical Group currently has a consensus target price of $8.50, indicating a potential upside of 106.31%. Community Health Systems has a consensus target price of $2.95, indicating a potential upside of 2.43%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, research analysts plainly believe SBC Medical Group is more favorable than Community Health Systems.

Summary

SBC Medical Group beats Community Health Systems on 9 of the 14 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 Community Health Systems

Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, and direct-to-consumer virtual health visits. The company was incorporated in 1996 and is headquartered in Franklin, Tennessee.