LifeStance Health Group (NASDAQ:LFST – Get Free Report) and Option Care Health (NASDAQ:OPCH – Get Free Report) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
LifeStance Health Group has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Option Care Health has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Insider and Institutional Ownership
85.5% of LifeStance Health Group shares are held by institutional investors. Comparatively, 98.1% of Option Care Health shares are held by institutional investors. 3.2% of LifeStance Health Group shares are held by company insiders. Comparatively, 0.6% of Option Care Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LifeStance Health Group | $1.25 billion | 1.67 | -$57.44 million | ($0.05) | -107.40 |
| Option Care Health | $5.00 billion | 0.94 | $211.82 million | $1.25 | 23.27 |
Option Care Health has higher revenue and earnings than LifeStance Health Group. LifeStance Health Group is trading at a lower price-to-earnings ratio than Option Care Health, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for LifeStance Health Group and Option Care Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LifeStance Health Group | 1 | 0 | 5 | 1 | 2.86 |
| Option Care Health | 0 | 1 | 8 | 0 | 2.89 |
LifeStance Health Group currently has a consensus target price of $8.50, indicating a potential upside of 58.29%. Option Care Health has a consensus target price of $35.75, indicating a potential upside of 22.89%. Given LifeStance Health Group’s higher possible upside, research analysts clearly believe LifeStance Health Group is more favorable than Option Care Health.
Profitability
This table compares LifeStance Health Group and Option Care Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LifeStance Health Group | -1.23% | -1.11% | -0.76% |
| Option Care Health | 3.93% | 17.53% | 7.17% |
Summary
Option Care Health beats LifeStance Health Group on 10 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 Option Care Health
Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.
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