Analyzing SBC Medical Group (NASDAQ:SBC) and Henry Schein (NASDAQ:HSIC)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Henry Schein and SBC Medical Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henry Schein	1	6	8	0	2.47
SBC Medical Group	1	0	2	0	2.33

Henry Schein presently has a consensus target price of $92.93, suggesting a potential upside of 4.08%. SBC Medical Group has a consensus target price of $8.50, suggesting a potential upside of 119.64%. Given SBC Medical Group’s higher probable upside, analysts clearly believe SBC Medical Group is more favorable than Henry Schein.

Earnings & Valuation

This table compares Henry Schein 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
Henry Schein	$13.18 billion	0.75	$398.00 million	$3.43	26.03
SBC Medical Group	$173.61 million	2.29	$50.99 million	$0.47	8.23

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

Insider and Institutional Ownership

96.6% of Henry Schein shares are held by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are held by institutional investors. 0.9% of Henry Schein shares are held by insiders. Comparatively, 81.7% of SBC Medical Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Henry Schein	2.96%	15.97%	5.56%
SBC Medical Group	27.99%	18.47%	13.10%

Volatility and Risk

Henry Schein has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, SBC Medical Group has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Henry Schein beats SBC Medical Group on 8 of the 14 factors compared between the two stocks.

About Henry Schein

Henry Schein, Inc. provides health care products and services to dental practitioners, laboratories, physician practices, and ambulatory surgery centers, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products, such as branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners; and value-added practice solutions comprising practice consultancy, education, revenue cycle management and financial services, e-services, practice technology, and network and hardware services, as well as consulting, and continuing education services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.

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.