SBC Medical Group (NASDAQ:SBC) & GeneDx (NASDAQ:WGS) Critical Contrast

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

Valuation and Earnings

This table compares GeneDx and SBC Medical Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$427.54 million	2.93	-$21.02 million	($2.68)	-15.72
SBC Medical Group	$173.61 million	1.71	$50.99 million	$0.39	7.41

SBC Medical Group has lower revenue, but higher earnings than GeneDx. GeneDx 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 GeneDx and SBC Medical Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GeneDx	-17.58%	9.15%	5.21%
SBC Medical Group	24.09%	15.90%	11.61%

Volatility and Risk

GeneDx has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, SBC Medical Group has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for GeneDx and SBC Medical Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneDx	1	1	6	0	2.63
SBC Medical Group	0	1	2	0	2.67

GeneDx presently has a consensus target price of $96.43, suggesting a potential upside of 128.88%. SBC Medical Group has a consensus target price of $8.50, suggesting a potential upside of 194.12%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, analysts plainly believe SBC Medical Group is more favorable than GeneDx.

Institutional & Insider Ownership

61.7% of GeneDx shares are owned by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are owned by institutional investors. 29.6% of GeneDx shares are owned by insiders. Comparatively, 89.5% of SBC Medical Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

SBC Medical Group beats GeneDx on 9 of the 14 factors compared between the two stocks.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.

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.