Analyzing LifeStance Health Group (NASDAQ:LFST) & Chemed (NYSE:CHE)

Chemed (NYSE:CHE) and LifeStance Health Group (NASDAQ:LFST) are both mid-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Institutional and Insider Ownership

95.9% of Chemed shares are held by institutional investors. Comparatively, 85.5% of LifeStance Health Group shares are held by institutional investors. 3.3% of Chemed shares are held by insiders. Comparatively, 3.2% of LifeStance Health Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Chemed and LifeStance Health Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chemed	10.48%	25.66%	17.24%
LifeStance Health Group	0.68%	0.65%	0.45%

Risk and Volatility

Chemed has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, LifeStance Health Group has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares Chemed and LifeStance Health Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemed	$2.53 billion	2.06	$265.24 million	$18.37	20.59
LifeStance Health Group	$1.42 billion	1.74	$9.66 million	$0.02	318.50

Chemed has higher revenue and earnings than LifeStance Health Group. Chemed is trading at a lower price-to-earnings ratio than LifeStance Health Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Chemed and LifeStance Health Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemed	1	3	2	0	2.17
LifeStance Health Group	0	2	6	1	2.89

Chemed presently has a consensus target price of $498.00, suggesting a potential upside of 31.66%. LifeStance Health Group has a consensus target price of $9.83, suggesting a potential upside of 54.37%. Given LifeStance Health Group’s stronger consensus rating and higher probable upside, analysts plainly believe LifeStance Health Group is more favorable than Chemed.

Summary

Chemed beats LifeStance Health Group on 9 of the 15 factors compared between the two stocks.

About Chemed

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.

About LifeStance Health Group

LifeStance Health Group, Inc., through its subsidiaries, provides outpatient mental health services to children, adolescents, adults, and geriatrics in the United States. The company offers patients a suite of mental health services, including psychiatric evaluations and treatment, psychological, and neuropsychological testing, as well as individual, family, and group therapy. It treats a range of mental health conditions, including anxiety, depression, bipolar disorder, eating disorders, psychotic disorders, and post-traumatic stress disorder. In addition, the company operates an outpatient mental health platform, as well as offers patient care virtually through its online delivery platform or in-person at its centers. LifeStance Health Group, Inc. was founded in 2017 and is headquartered in Scottsdale, Arizona.