SBC Medical Group (NASDAQ:SBC – Get Free Report) and GeneDx (NASDAQ:WGS – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Profitability
This table compares SBC Medical Group and GeneDx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SBC Medical Group | 24.09% | 15.90% | 11.61% |
| GeneDx | -17.58% | 9.15% | 5.21% |
Institutional and Insider Ownership
60.8% of SBC Medical Group shares are held by institutional investors. Comparatively, 61.7% of GeneDx shares are held by institutional investors. 89.5% of SBC Medical Group shares are held by company insiders. Comparatively, 29.6% of GeneDx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SBC Medical Group | $173.61 million | 1.83 | $50.99 million | $0.39 | 7.95 |
| GeneDx | $442.68 million | 3.17 | -$21.02 million | ($2.68) | -17.66 |
SBC Medical Group has higher earnings, but lower revenue 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for SBC Medical Group and GeneDx, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBC Medical Group | 0 | 1 | 2 | 0 | 2.67 |
| GeneDx | 1 | 1 | 6 | 0 | 2.63 |
SBC Medical Group currently has a consensus target price of $8.50, indicating a potential upside of 174.19%. GeneDx has a consensus target price of $96.43, indicating a potential upside of 103.74%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe SBC Medical Group is more favorable than GeneDx.
Volatility and Risk
SBC Medical Group has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, GeneDx has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.
Summary
SBC Medical Group beats GeneDx on 9 of the 14 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 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.
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