Critical Analysis: SBC Medical Group (NASDAQ:SBC) & Hims & Hers Health (NYSE:HIMS)

SBC Medical Group (NASDAQ:SBC) and Hims & Hers Health (NYSE:HIMS) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Volatility & Risk

SBC Medical Group has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are owned by institutional investors. 63.9% of SBC Medical Group shares are owned by insiders. Comparatively, 17.7% of Hims & Hers Health shares are owned by 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.

Profitability

This table compares SBC Medical Group and Hims & Hers Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBC Medical Group	N/A	-11.59%	-7.05%
Hims & Hers Health	8.19%	10.97%	8.29%

Analyst Ratings

This is a summary of recent recommendations for SBC Medical Group and Hims & Hers Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	0	0	0	0	0.00
Hims & Hers Health	1	8	8	0	2.41

Hims & Hers Health has a consensus target price of $22.80, suggesting a potential downside of 14.16%. Given Hims & Hers Health’s stronger consensus rating and higher probable upside, analysts plainly believe Hims & Hers Health is more favorable than SBC Medical Group.

Valuation & Earnings

This table compares SBC Medical Group and Hims & Hers Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$223.34 million	2.68	$340,000.00	N/A	N/A
Hims & Hers Health	$1.24 billion	4.67	-$23.55 million	$0.44	60.36

SBC Medical Group has higher earnings, but lower revenue than Hims & Hers Health.

Summary

Hims & Hers Health beats SBC Medical Group on 10 of the 12 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 Hims & Hers Health

Hims & Hers Health, Inc. operates a telehealth platform that connects consumers to licensed healthcare professionals in the United States, the United Kingdom, and internationally. The company offers a range of curated prescription and non-prescription health and wellness products and services available to purchase on its websites and mobile application directly by customers. It also provides prescription medication on a recurring basis and ongoing care from healthcare providers; and over-the-counter drug and device products, cosmetics, and supplement products primarily focusing on general wellness, sexual health and wellness, skincare, and hair care. In addition, the company's curated non-prescription products include melatonin and biotin in the wellness specialty category; moisturizers, creams, sunscreen, serum, face oil, and face wash in the skincare specialty; condoms, climax delay spray and wipes, vibrators, and lubricants in the sexual health and wellness specialty; and shampoos, conditioners, scalp scrubs, and topical treatments, such as minoxidil in the hair care specialty category. Further, it offers medical consultation and post-consultation support services, as well as health and wellness products through wholesale partners. Hims & Hers Health, Inc. is based in San Francisco, California.