Head-To-Head Analysis: Chemed (NYSE:CHE) vs. LifeStance Health Group (NASDAQ:LFST)

LifeStance Health Group (NASDAQ:LFST) and Chemed (NYSE:CHE) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Profitability

This table compares LifeStance Health Group and Chemed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LifeStance Health Group	0.68%	0.65%	0.45%
Chemed	10.48%	25.66%	17.24%

Analyst Recommendations

This is a summary of recent ratings and price targets for LifeStance Health Group and Chemed, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeStance Health Group	0	2	6	1	2.89
Chemed	1	3	2	0	2.17

LifeStance Health Group currently has a consensus price target of $9.83, indicating a potential upside of 55.59%. Chemed has a consensus price target of $498.00, indicating a potential upside of 35.17%. Given LifeStance Health Group’s stronger consensus rating and higher possible upside, analysts plainly believe LifeStance Health Group is more favorable than Chemed.

Valuation & Earnings

This table compares LifeStance Health Group and Chemed”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeStance Health Group	$1.42 billion	1.73	$9.66 million	$0.02	316.00
Chemed	$2.53 billion	2.00	$265.24 million	$18.37	20.06

Chemed has higher revenue and earnings than LifeStance Health Group. Chemed is trading at a lower price-to-earnings ratio than LifeStance Health Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

85.5% of LifeStance Health Group shares are held by institutional investors. Comparatively, 95.8% of Chemed shares are held by institutional investors. 3.2% of LifeStance Health Group shares are held by company insiders. Comparatively, 3.3% of Chemed shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

LifeStance Health Group has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Chemed has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Summary

Chemed 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 Chemed

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.