Encompass Health (NYSE:EHC – Get Free Report) and LifeStance Health Group (NASDAQ:LFST – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Earnings and Valuation
This table compares Encompass Health and LifeStance Health Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Encompass Health | $5.37 billion | 2.36 | $455.70 million | $5.11 | 24.62 |
| LifeStance Health Group | $1.32 billion | 1.60 | -$57.44 million | ($0.05) | -108.40 |
Profitability
This table compares Encompass Health and LifeStance Health Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Encompass Health | 9.22% | 17.83% | 7.68% |
| LifeStance Health Group | -1.23% | -1.11% | -0.76% |
Insider and Institutional Ownership
97.3% of Encompass Health shares are held by institutional investors. Comparatively, 85.5% of LifeStance Health Group shares are held by institutional investors. 2.1% of Encompass Health shares are held by company insiders. Comparatively, 3.2% of LifeStance Health Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Encompass Health has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, LifeStance Health Group has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Encompass Health and LifeStance Health Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encompass Health | 0 | 0 | 7 | 1 | 3.13 |
| LifeStance Health Group | 1 | 0 | 5 | 1 | 2.86 |
Encompass Health presently has a consensus target price of $138.43, suggesting a potential upside of 10.01%. LifeStance Health Group has a consensus target price of $8.50, suggesting a potential upside of 56.83%. Given LifeStance Health Group’s higher possible upside, analysts clearly believe LifeStance Health Group is more favorable than Encompass Health.
Summary
Encompass Health beats LifeStance Health Group on 11 of the 14 factors compared between the two stocks.
About Encompass Health
Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions. It offers services through the Medicare program to federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. The company was incorporated in 1984 and is based in Birmingham, Alabama.
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.
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