Analyzing SBC Medical Group (NASDAQ:SBC) and INVO Fertility (NASDAQ:IVF)
by Sarita Garza · The Markets DailySBC Medical Group (NASDAQ:SBC – Get Free Report) and INVO Fertility (NASDAQ:IVF – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Valuation & Earnings
This table compares SBC Medical Group and INVO Fertility”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 | 3.13 | $50.99 million | $0.47 | 11.23 |
| INVO Fertility | $6.84 million | 0.21 | -$25.13 million | ($33.83) | -0.02 |
SBC Medical Group has higher revenue and earnings than INVO Fertility. INVO Fertility 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.
Insider & Institutional Ownership
60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 12.0% of INVO Fertility shares are owned by institutional investors. 81.7% of SBC Medical Group shares are owned by insiders. Comparatively, 0.4% of INVO Fertility shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for SBC Medical Group and INVO Fertility, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBC Medical Group | 0 | 1 | 2 | 0 | 2.67 |
| INVO Fertility | 1 | 0 | 0 | 1 | 2.50 |
SBC Medical Group presently has a consensus target price of $8.50, suggesting a potential upside of 60.98%. INVO Fertility has a consensus target price of $20.00, suggesting a potential upside of 3,406.93%. Given INVO Fertility’s higher possible upside, analysts plainly believe INVO Fertility is more favorable than SBC Medical Group.
Risk and Volatility
SBC Medical Group has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, INVO Fertility has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500.
Profitability
This table compares SBC Medical Group and INVO Fertility’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% |
| INVO Fertility | -116.29% | -85.54% | -31.05% |
Summary
SBC Medical Group beats INVO Fertility on 12 of the 15 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 INVO Fertility
INVO Bioscience, Inc., together with its subsidiary, a healthcare services fertility company, provides assisted reproductive technology solutions worldwide. It offers INVOcell, a medical device that allows fertilization and early embryo development to take place in vivo within the woman’s body. The company was founded in 2007 and is based in Sarasota, Florida.