Reviewing Establishment Labs (NASDAQ:ESTA) and SBC Medical Group (NASDAQ:SBC)

Establishment Labs (NASDAQ:ESTA) and SBC Medical Group (NASDAQ:SBC) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are held by institutional investors. 11.1% of Establishment Labs shares are held by company insiders. Comparatively, 89.5% of SBC Medical Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Establishment Labs	-43.45%	-235.45%	-22.83%
SBC Medical Group	24.28%	24.17%	18.60%

Risk and Volatility

Establishment Labs has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, SBC Medical Group has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Establishment Labs and SBC Medical Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	1	1	6	0	2.63
SBC Medical Group	1	0	1	0	2.00

Establishment Labs presently has a consensus price target of $78.86, indicating a potential upside of 3.94%. SBC Medical Group has a consensus price target of $9.00, indicating a potential upside of 110.77%. Given SBC Medical Group’s higher possible upside, analysts plainly believe SBC Medical Group is more favorable than Establishment Labs.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$166.02 million	13.28	-$84.60 million	($2.84)	-26.71
SBC Medical Group	$205.42 million	2.13	$46.61 million	$0.41	10.41

SBC Medical Group has higher revenue and earnings than Establishment Labs. Establishment Labs 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.

Summary

SBC Medical Group beats Establishment Labs on 10 of the 14 factors compared between the two stocks.

About Establishment Labs

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.

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.