LifeStance Health Group (NASDAQ:LFST – Get Free Report) and Quest Diagnostics (NYSE:DGX – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
Profitability
This table compares LifeStance Health Group and Quest Diagnostics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LifeStance Health Group | -0.67% | -0.62% | -0.43% |
| Quest Diagnostics | 8.91% | 15.47% | 6.84% |
Earnings and Valuation
This table compares LifeStance Health Group and Quest Diagnostics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LifeStance Health Group | $1.25 billion | 1.93 | -$57.44 million | ($0.03) | -206.67 |
| Quest Diagnostics | $10.85 billion | 1.90 | $871.00 million | $8.52 | 21.75 |
Quest Diagnostics has higher revenue and earnings than LifeStance Health Group. LifeStance Health Group is trading at a lower price-to-earnings ratio than Quest Diagnostics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LifeStance Health Group has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Quest Diagnostics has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Institutional & Insider Ownership
85.5% of LifeStance Health Group shares are owned by institutional investors. Comparatively, 88.1% of Quest Diagnostics shares are owned by institutional investors. 6.6% of LifeStance Health Group shares are owned by company insiders. Comparatively, 8.2% of Quest Diagnostics shares are owned by company 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.
Analyst Ratings
This is a breakdown of recent ratings for LifeStance Health Group and Quest Diagnostics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LifeStance Health Group | 1 | 1 | 6 | 1 | 2.78 |
| Quest Diagnostics | 0 | 10 | 8 | 1 | 2.53 |
LifeStance Health Group presently has a consensus price target of $9.00, suggesting a potential upside of 45.16%. Quest Diagnostics has a consensus price target of $196.31, suggesting a potential upside of 5.91%. Given LifeStance Health Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe LifeStance Health Group is more favorable than Quest Diagnostics.
Summary
Quest Diagnostics beats LifeStance Health Group on 10 of the 14 factors compared between the two stocks.
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.
About Quest Diagnostics
Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.
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