Critical Analysis: Community Health Systems (NYSE:CYH) & SBC Medical Group (NASDAQ:SBC)
by Tristan Rich · The Markets DailyCommunity Health Systems (NYSE:CYH – Get Free Report) and SBC Medical Group (NASDAQ:SBC – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Profitability
This table compares Community Health Systems and SBC Medical Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Community Health Systems | 2.10% | -6.66% | 0.62% |
| SBC Medical Group | 27.99% | 18.47% | 13.10% |
Analyst Recommendations
This is a breakdown of current recommendations for Community Health Systems and SBC Medical Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Community Health Systems | 3 | 3 | 1 | 0 | 1.71 |
| SBC Medical Group | 1 | 0 | 2 | 0 | 2.33 |
Community Health Systems currently has a consensus target price of $2.95, suggesting a potential upside of 2.43%. SBC Medical Group has a consensus target price of $8.50, suggesting a potential upside of 106.31%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, analysts clearly believe SBC Medical Group is more favorable than Community Health Systems.
Valuation & Earnings
This table compares Community Health Systems and SBC Medical Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Community Health Systems | $11.98 billion | 0.03 | $509.00 million | $1.85 | 1.56 |
| SBC Medical Group | $175.17 million | 2.42 | $50.99 million | $0.47 | 8.77 |
Community Health Systems has higher revenue and earnings than SBC Medical Group. Community Health Systems 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.
Volatility and Risk
Community Health Systems has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, SBC Medical Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.
Insider and Institutional Ownership
85.0% of Community Health Systems shares are owned by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are owned by institutional investors. 11.1% of Community Health Systems shares are owned by company insiders. Comparatively, 81.7% of SBC Medical Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
SBC Medical Group beats Community Health Systems on 9 of the 14 factors compared between the two stocks.
About Community Health Systems
Community Health Systems, Inc. owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, and direct-to-consumer virtual health visits. The company was incorporated in 1996 and is headquartered in Franklin, Tennessee.
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.