Critical Survey: SBC Medical Group (NASDAQ:SBC) versus Precipio (NASDAQ:PRPO)

SBC Medical Group (NASDAQ:SBC) and Precipio (NASDAQ:PRPO) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$173.61 million	2.65	$50.99 million	$0.47	9.53
Precipio	$24.05 million	1.98	-$360,000.00	($0.64)	-41.66

SBC Medical Group has higher revenue and earnings than Precipio. Precipio 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 ratings and price targets for SBC Medical Group and Precipio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	1	0	2	0	2.33
Precipio	1	0	0	0	1.00

SBC Medical Group currently has a consensus target price of $8.50, indicating a potential upside of 89.73%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, research analysts plainly believe SBC Medical Group is more favorable than Precipio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SBC Medical Group	27.99%	18.47%	13.10%
Precipio	-4.47%	-8.49%	-5.75%

Insider & Institutional Ownership

60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 10.4% of Precipio shares are owned by institutional investors. 81.7% of SBC Medical Group shares are owned by insiders. Comparatively, 16.6% of Precipio shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

SBC Medical Group has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Precipio has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

SBC Medical Group beats Precipio on 13 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 Precipio

Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.