Analyzing SBC Medical Group (NASDAQ:SBC) and HealthEquity (NASDAQ:HQY)

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

Analyst Recommendations

This is a summary of recent ratings for HealthEquity and SBC Medical Group, as provided by MarketBeat.com.

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

HealthEquity currently has a consensus target price of $111.87, suggesting a potential upside of 16.44%. SBC Medical Group has a consensus target price of $8.50, suggesting a potential upside of 106.31%. Given SBC Medical Group’s higher probable upside, analysts clearly believe SBC Medical Group is more favorable than HealthEquity.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthEquity	$1.36 billion	5.83	$215.20 million	$2.77	34.68
SBC Medical Group	$175.17 million	2.42	$50.99 million	$0.47	8.77

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.

Institutional and Insider Ownership

99.6% of HealthEquity shares are owned by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are owned by institutional investors. 1.6% of HealthEquity shares are owned by insiders. Comparatively, 81.7% of SBC Medical Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

HealthEquity has a beta of 0.22, suggesting that its share price is 78% 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.

Profitability

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

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

Summary

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

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.

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.