Contrasting SBC Medical Group (NASDAQ:SBC) and DaVita (NYSE:DVA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DaVita	6.05%	-217.63%	5.07%
SBC Medical Group	27.99%	18.47%	13.10%

Volatility & Risk

DaVita has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, SBC Medical Group has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for DaVita and SBC Medical Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DaVita	0	4	3	0	2.43
SBC Medical Group	0	1	2	0	2.67

DaVita presently has a consensus target price of $233.43, suggesting a potential upside of 30.66%. SBC Medical Group has a consensus target price of $8.50, suggesting a potential upside of 66.99%. Given SBC Medical Group’s stronger consensus rating and higher possible upside, analysts plainly believe SBC Medical Group is more favorable than DaVita.

Insider & Institutional Ownership

90.1% of DaVita shares are owned by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are owned by institutional investors. 1.9% of DaVita shares are owned by company insiders. Comparatively, 81.7% of SBC Medical Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DaVita	$13.64 billion	0.84	$746.80 million	$12.22	14.62
SBC Medical Group	$173.61 million	3.02	$50.99 million	$0.47	10.83

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

About DaVita

DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.

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.