Head-To-Head Analysis: BrightSpring Health Services (NASDAQ:BTSG) & Avantor (NYSE:AVTR)

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

Earnings & Valuation

This table compares Avantor and BrightSpring Health Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avantor	$6.55 billion	0.83	-$530.20 million	($0.81)	-9.86
BrightSpring Health Services	$12.91 billion	0.83	$190.67 million	$1.41	39.06

BrightSpring Health Services has higher revenue and earnings than Avantor. Avantor 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

Avantor has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, BrightSpring Health Services has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Avantor and BrightSpring Health Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avantor	2	10	3	0	2.07
BrightSpring Health Services	0	0	15	2	3.12

Avantor presently has a consensus target price of $11.39, indicating a potential upside of 42.68%. BrightSpring Health Services has a consensus target price of $56.29, indicating a potential upside of 2.21%. Given Avantor’s higher probable upside, equities analysts plainly believe Avantor is more favorable than BrightSpring Health Services.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avantor	-8.42%	9.95%	4.78%
BrightSpring Health Services	2.27%	14.63%	4.41%

Insider & Institutional Ownership

95.1% of Avantor shares are held by institutional investors. 0.3% of Avantor shares are held by insiders. Comparatively, 2.8% of BrightSpring Health Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

BrightSpring Health Services beats Avantor on 11 of the 15 factors compared between the two stocks.

About Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.

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.