Head to Head Comparison: BrightSpring Health Services (NASDAQ:BTSG) vs. Labcorp (NYSE:LH)

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

Institutional & Insider Ownership

95.9% of Labcorp shares are held by institutional investors. 3.4% of BrightSpring Health Services shares are held by insiders. Comparatively, 0.8% of Labcorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

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

Earnings & Valuation

This table compares BrightSpring Health Services and Labcorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrightSpring Health Services	$11.27 billion	0.62	-$18.06 million	$0.61	63.03
Labcorp	$13.01 billion	1.67	$746.00 million	$10.18	25.70

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.

Risk & Volatility

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrightSpring Health Services	0	2	14	1	2.94
Labcorp	0	5	10	0	2.67

BrightSpring Health Services presently has a consensus target price of $40.42, indicating a potential upside of 5.11%. Labcorp has a consensus target price of $299.77, indicating a potential upside of 14.60%. Given Labcorp’s higher probable upside, analysts clearly believe Labcorp is more favorable than BrightSpring Health Services.

Summary

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

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.

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.