LifeStance Health Group (NASDAQ:LFST – Get Free Report) and Addus HomeCare (NASDAQ:ADUS – Get Free Report) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
85.5% of LifeStance Health Group shares are held by institutional investors. Comparatively, 95.4% of Addus HomeCare shares are held by institutional investors. 6.6% of LifeStance Health Group shares are held by company insiders. Comparatively, 4.5% of Addus HomeCare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares LifeStance Health Group and Addus HomeCare”s gross 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 | 2.25 | -$57.44 million | ($0.03) | -241.67 |
| Addus HomeCare | $1.15 billion | 1.72 | $73.60 million | $4.67 | 23.02 |
Addus HomeCare has lower revenue, but higher earnings than LifeStance Health Group. LifeStance Health Group is trading at a lower price-to-earnings ratio than Addus HomeCare, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LifeStance Health Group has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Addus HomeCare has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for LifeStance Health Group and Addus HomeCare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LifeStance Health Group | 1 | 1 | 5 | 2 | 2.89 |
| Addus HomeCare | 1 | 2 | 8 | 1 | 2.75 |
LifeStance Health Group presently has a consensus target price of $8.83, suggesting a potential upside of 21.84%. Addus HomeCare has a consensus target price of $136.90, suggesting a potential upside of 27.35%. Given Addus HomeCare’s higher probable upside, analysts clearly believe Addus HomeCare is more favorable than LifeStance Health Group.
Profitability
This table compares LifeStance Health Group and Addus HomeCare’s 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% |
| Addus HomeCare | 6.36% | 9.53% | 6.81% |
Summary
Addus HomeCare beats LifeStance Health Group on 9 of the 15 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 Addus HomeCare
Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. The company operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization. The company's payor clients include federal, state, and local governmental agencies; managed care organizations; commercial insurers; and private individuals. Addus HomeCare Corporation was founded in 1979 and is headquartered in Frisco, Texas.
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