Head-To-Head Analysis: Avantor (NYSE:AVTR) & SBC Medical Group (NASDAQ:SBC)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$205.42 million	1.90	$46.61 million	$0.41	9.29
Avantor	$6.55 billion	0.80	-$530.20 million	($0.78)	-9.84

SBC Medical Group has higher earnings, but lower revenue than Avantor. Avantor 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 Ratings

This is a breakdown of current recommendations for SBC Medical Group and Avantor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	1	0	2	0	2.33
Avantor	3	10	3	0	2.00

SBC Medical Group currently has a consensus target price of $8.50, indicating a potential upside of 123.10%. Avantor has a consensus target price of $11.80, indicating a potential upside of 53.75%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, analysts clearly believe SBC Medical Group is more favorable than Avantor.

Insider and Institutional Ownership

60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 95.1% of Avantor shares are owned by institutional investors. 89.5% of SBC Medical Group shares are owned by insiders. Comparatively, 1.2% of Avantor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SBC Medical Group has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Avantor has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SBC Medical Group	24.28%	24.17%	18.60%
Avantor	-8.09%	10.45%	5.06%

Summary

SBC Medical Group beats Avantor on 11 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 Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.