Analyzing SBC Medical Group (NASDAQ:SBC) and Life Healthcare Group (OTCMKTS:LTGHY)

Life Healthcare Group (OTCMKTS:LTGHY) and SBC Medical Group (NASDAQ:SBC) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Institutional and Insider Ownership

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Life Healthcare Group and SBC Medical Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Healthcare Group	0	1	0	0	2.00
SBC Medical Group	1	0	2	0	2.33

SBC Medical Group has a consensus price target of $8.50, suggesting a potential upside of 165.62%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, analysts plainly believe SBC Medical Group is more favorable than Life Healthcare Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Life Healthcare Group	N/A	N/A	N/A
SBC Medical Group	24.09%	15.90%	11.61%

Valuation and Earnings

This table compares Life Healthcare Group 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
Life Healthcare Group	N/A	N/A	N/A	N/A	N/A
SBC Medical Group	$169.34 million	1.94	$50.99 million	$0.39	8.21

SBC Medical Group has higher revenue and earnings than Life Healthcare Group.

Summary

SBC Medical Group beats Life Healthcare Group on 9 of the 9 factors compared between the two stocks.

About Life Healthcare Group

Life Healthcare Group Holdings Limited, together with its subsidiaries, operates private hospitals in South Africa, Canada, the United Kingdom, rest of Europe, and Internationally. It operates through two segments, Hospitals and Complementary Services; and Healthcare Services. The company provides range of acute hospitals and complementary services; Life Esidimeni services, such as chronic mental healthcare, frail care rehabilitation, step-down care, correctional services, and primary healthcare and substance abuse recovery programs; and life employee health solutions, including on-site occupational and primary healthcare services and employee wellness programs. It also offers services in the areas of diagnostics, mental health, acute rehabilitation, renal dialysis, oncology, cardiology, neurology, orthopedic, pediatric, dermatology, ophthalmology, gynecology, and obstetric. In addition, the company provides diagnostic imaging services; magnetic resonance imaging and computerized tomography scanners; develops, manufactures, and distributes radiopharmaceuticals for use in positron emission tomography-computerized tomography (PET-CT) diagnostics. The company was formerly known as Afrox Healthcare Limited and changed its name to Life Healthcare Group Holdings Limited in January 2005. Life Healthcare Group Holdings Limited was founded in 1983 and is headquartered in Johannesburg, South Africa.

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.