Reviewing BrightSpring Health Services (NASDAQ:BTSG) & Labcorp (NYSE:LH)

Labcorp (NYSE:LH) and BrightSpring Health Services (NASDAQ:BTSG) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

Labcorp has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, BrightSpring Health Services has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500.

Profitability

This table compares Labcorp and BrightSpring Health Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Labcorp	6.21%	15.85%	7.35%
BrightSpring Health Services	1.04%	11.61%	3.37%

Insider and Institutional Ownership

95.9% of Labcorp shares are owned by institutional investors. 0.8% of Labcorp shares are owned by company insiders. Comparatively, 3.4% of BrightSpring Health Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Labcorp and BrightSpring Health Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Labcorp	0	5	10	0	2.67
BrightSpring Health Services	0	2	13	1	2.94

Labcorp currently has a consensus price target of $299.77, indicating a potential upside of 12.39%. BrightSpring Health Services has a consensus price target of $40.92, indicating a potential upside of 3.28%. Given Labcorp’s higher probable upside, analysts clearly believe Labcorp is more favorable than BrightSpring Health Services.

Valuation & Earnings

This table compares Labcorp and BrightSpring Health Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Labcorp	$13.01 billion	1.70	$746.00 million	$10.18	26.20
BrightSpring Health Services	$11.27 billion	0.63	-$18.06 million	$0.61	64.95

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

Summary

Labcorp beats BrightSpring Health Services on 9 of the 15 factors compared between the two stocks.

About Labcorp

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

About BrightSpring Health Services

BrightSpring Health Services, Inc. operates a home and community-based healthcare services platform in the United States. The company's platform focuses on delivering pharmacy and provider services, including clinical and supportive care in home and community settings to Medicare, Medicaid, and insured populations. It serves patients through clinical providers and pharmacists. The company was formerly known as Phoenix Parent Holdings Inc. and changed its name to BrightSpring Health Services, Inc. in May 2021. BrightSpring Health Services, Inc. was founded in 1974 and is headquartered in Louisville, Kentucky.