Reviewing SBC Medical Group (NASDAQ:SBC) and Precipio (NASDAQ:PRPO)

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

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, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

SBC Medical Group has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Precipio has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

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	N/A	N/A	N/A
Precipio	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$175.17 million	3.06	$48.34 million	$0.47	11.09
Precipio	$27.20 million	1.24	-$1.15 million	($0.64)	-29.55

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 Recommendations

This is a summary of recent ratings and recommmendations 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	0	1	2	0	2.67
Precipio	1	0	0	0	1.00

SBC Medical Group currently has a consensus target price of $8.50, suggesting a potential upside of 63.15%. Given SBC Medical Group’s stronger consensus rating and higher possible upside, research analysts clearly believe SBC Medical Group is more favorable than Precipio.

Summary

SBC Medical Group beats Precipio on 10 of the 11 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.