Avantor (NYSE:AVTR – Get Free Report) and SBC Medical Group (NASDAQ:SBC – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Profitability
This table compares Avantor and SBC Medical Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avantor | -8.09% | 10.45% | 5.06% |
| SBC Medical Group | 24.28% | 24.17% | 18.60% |
Earnings & Valuation
This table compares Avantor and SBC Medical Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avantor | $6.55 billion | 0.79 | -$530.20 million | ($0.78) | -9.76 |
| SBC Medical Group | $205.42 million | 1.81 | $46.61 million | $0.41 | 8.85 |
SBC Medical Group has lower revenue, but higher earnings than Avantor. Avantor 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
Avantor has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, SBC Medical Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Insider and Institutional Ownership
95.1% of Avantor shares are owned by institutional investors. Comparatively, 60.8% of SBC Medical Group shares are owned by institutional investors. 1.2% of Avantor shares are owned by company insiders. Comparatively, 89.5% of SBC Medical Group shares are owned by company 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 Ratings
This is a summary of recent ratings for Avantor and SBC Medical Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avantor | 3 | 10 | 3 | 0 | 2.00 |
| SBC Medical Group | 1 | 0 | 2 | 0 | 2.33 |
Avantor currently has a consensus price target of $11.80, suggesting a potential upside of 54.96%. SBC Medical Group has a consensus price target of $8.50, suggesting a potential upside of 134.16%. Given SBC Medical Group’s stronger consensus rating and higher possible upside, analysts clearly believe SBC Medical Group is more favorable than Avantor.
Summary
SBC Medical Group beats Avantor on 11 of the 14 factors compared between the two stocks.
About Avantor
Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.
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.
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