Analyzing Centene (NYSE:CNC) & SBC Medical Group (NASDAQ:SBC)

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

Insider & Institutional Ownership

60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 93.6% of Centene shares are owned by institutional investors. 81.7% of SBC Medical Group shares are owned by insiders. Comparatively, 0.4% of Centene shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$173.61 million	2.87	$50.99 million	$0.47	10.30
Centene	$194.78 billion	0.16	-$6.67 billion	($10.44)	-5.96

SBC Medical Group has higher earnings, but lower revenue than Centene. Centene 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 Centene’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%
Centene	-2.51%	12.12%	3.20%

Risk and Volatility

SBC Medical Group has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Centene has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SBC Medical Group and Centene, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	0	1	2	0	2.67
Centene	2	9	9	1	2.43

SBC Medical Group presently has a consensus price target of $8.50, suggesting a potential upside of 75.62%. Centene has a consensus price target of $70.05, suggesting a potential upside of 12.64%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe SBC Medical Group is more favorable than Centene.

Summary

SBC Medical Group beats Centene on 10 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 Centene

Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, commercial organizations, and military families in the United States. The company operates through Medicaid, Medicare, Commercial, and Other segments. The Medicaid segment offers health plan coverage, including medicaid expansion, aged, blind, disabled, children’s health insurance program, foster care, medicare-medicaid plans, long-term services and support. This segment also provides healthcare products. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual, small, and large group commercials. It also operates clinical healthcare and pharmacies, as well as offers dental and speech therapy services. In addition, the company engages in the government contracts business under the TRICARE program and other healthcare related government contracts. It provides services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in Saint Louis, Missouri.