LifeStance Health Group (NASDAQ: LFST) and Fresenius SE & Co. (OTCMKTS: FSNUY) are two prominent players in the healthcare sector, each offering distinct services and financial profiles. This analysis contrasts the two companies across critical metrics such as profitability, institutional ownership, earnings, and risk.
Profitability is a key indicator of a company’s financial health. LifeStance Health Group reported a net margin of -1.23%, with a return on equity of -1.11% and a return on assets of -0.76%. In contrast, Fresenius SE & Co. demonstrated a positive net margin of 5.09%, with a return on equity of 9.33% and a return on assets of 4.31%. These figures suggest that Fresenius SE & Co. is more effectively generating profit relative to its revenue compared to LifeStance.
Institutional ownership also plays a significant role in assessing a company’s stability and growth potential. Approximately 85.5% of LifeStance Health Group’s shares are held by institutional investors, indicating strong confidence from large financial entities. Conversely, only 3.2% of its shares are owned by company insiders. This contrasts sharply with Fresenius SE & Co., which, while having a lower institutional ownership, still maintains a solid foundation with significant revenue.
When examining earnings and valuation, LifeStance Health Group reported gross revenue of $1.32 billion but faced a net income loss of $57.44 million, resulting in an earnings per share (EPS) of -$0.05. The company has a price-to-earnings (P/E) ratio of 102.80, indicating that it is currently considered a more affordable stock given its growth potential. In contrast, Fresenius SE & Co. generated gross revenue of $23.63 billion and a net income of $509.67 million, with an EPS of $0.53 and a P/E ratio of 29.81. These metrics suggest that Fresenius SE & Co. has a more robust operating model and profitability.
Risk and volatility are also crucial aspects for investors. LifeStance Health Group has a beta of 1.17, indicating its stock price is 17% more volatile than the S&P 500. This contrasts with Fresenius SE & Co., which has a beta of 0.83, suggesting its stock price is 17% less volatile, appealing to risk-averse investors.
Analyst ratings provide additional insight into market perceptions. LifeStance Health Group currently holds a consensus target price of $8.50, suggesting a potential upside of 65.37%. This positive outlook is bolstered by a higher number of buy ratings compared to Fresenius SE & Co. While LifeStance holds a rating score of 22.78, Fresenius scores 13.33 based on fewer buy recommendations.
In summary, while Fresenius SE & Co. outperforms LifeStance Health Group in several critical areas, including profitability and revenue, LifeStance’s strong institutional backing and growth potential could interest investors looking for long-term gains. The contrasting business models of these two companies reflect the diverse landscape of the healthcare industry.
About LifeStance Health Group
Founded in 2017 and headquartered in Scottsdale, Arizona, LifeStance Health Group offers a range of outpatient mental health services across the United States. Their services include psychiatric evaluations, psychological testing, and various therapy options for conditions such as anxiety and depression.
About Fresenius SE & Co.
Established in 1912 and based in Bad Homburg vor der Höhe, Germany, Fresenius SE & Co. KGaA operates in multiple segments, including medical care for chronic kidney failure and therapies for critically ill patients. The company provides a wide array of products, from dialysis technology to nutritional solutions, ensuring comprehensive care for its patients.
