Financial Contrast: LifeMD (NASDAQ:LFMD) versus Elevance Health (NYSE:ELV)

LifeMD (NASDAQ:LFMD) and Elevance Health (NYSE:ELV) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for LifeMD and Elevance Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeMD	1	1	8	0	2.70
Elevance Health	0	9	14	0	2.61

LifeMD presently has a consensus target price of $9.14, suggesting a potential upside of 86.02%. Elevance Health has a consensus target price of $416.11, suggesting a potential upside of 6.14%. Given LifeMD’s stronger consensus rating and higher probable upside, equities research analysts plainly believe LifeMD is more favorable than Elevance Health.

Profitability

This table compares LifeMD and Elevance Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LifeMD	2.37%	-150.88%	-22.59%
Elevance Health	2.62%	15.58%	5.57%

Earnings & Valuation

This table compares LifeMD and Elevance Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeMD	$194.05 million	1.22	$14.35 million	$0.05	98.30
Elevance Health	$200.42 billion	0.42	$5.66 billion	$23.51	16.68

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

Risk & Volatility

LifeMD has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Elevance Health has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

35.5% of LifeMD shares are held by institutional investors. Comparatively, 89.2% of Elevance Health shares are held by institutional investors. 17.2% of LifeMD shares are held by insiders. Comparatively, 0.3% of Elevance Health shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Elevance Health beats LifeMD on 8 of the 14 factors compared between the two stocks.

About LifeMD

LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.

About Elevance Health

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.