Cardinal Health (NYSE:CAH) & SBC Medical Group (NASDAQ:SBC) Critical Comparison
by Teresa Graham · The Cerbat GemSBC Medical Group (NASDAQ:SBC – Get Free Report) and Cardinal Health (NYSE:CAH – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
SBC Medical Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Cardinal Health has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Institutional & Insider Ownership
60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 87.2% of Cardinal Health shares are owned by institutional investors. 81.7% of SBC Medical Group shares are owned by insiders. Comparatively, 0.1% of Cardinal Health 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for SBC Medical Group and Cardinal Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBC Medical Group | 1 | 0 | 2 | 0 | 2.33 |
| Cardinal Health | 0 | 3 | 16 | 0 | 2.84 |
SBC Medical Group presently has a consensus price target of $8.50, indicating a potential upside of 95.85%. Cardinal Health has a consensus price target of $266.56, indicating a potential upside of 10.93%. Given SBC Medical Group’s higher possible upside, research analysts clearly believe SBC Medical Group is more favorable than Cardinal Health.
Profitability
This table compares SBC Medical Group and Cardinal Health’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% |
| Cardinal Health | 0.67% | -98.53% | 4.69% |
Valuation and Earnings
This table compares SBC Medical Group and Cardinal Health”s 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 | 2.57 | $50.99 million | $0.47 | 9.23 |
| Cardinal Health | $254.25 billion | 0.22 | $1.71 billion | $7.23 | 33.24 |
Cardinal Health has higher revenue and earnings than SBC Medical Group. SBC Medical Group is trading at a lower price-to-earnings ratio than Cardinal Health, indicating that it is currently the more affordable of 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 Cardinal Health
Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.