LifeStance Health Group (NASDAQ:LFST – Get Free Report) and PACS Group (NYSE:PACS – Get Free Report) are both mid-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
Analyst Recommendations
This is a summary of recent recommendations and price targets for LifeStance Health Group and PACS Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LifeStance Health Group | 0 | 4 | 6 | 1 | 2.73 |
| PACS Group | 0 | 2 | 5 | 0 | 2.71 |
LifeStance Health Group currently has a consensus price target of $13.12, suggesting a potential upside of 8.38%. PACS Group has a consensus price target of $58.80, suggesting a potential upside of 36.67%. Given PACS Group’s higher probable upside, analysts plainly believe PACS Group is more favorable than LifeStance Health Group.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LifeStance Health Group | $1.42 billion | 3.25 | $9.66 million | $0.13 | 93.15 |
| PACS Group | $5.29 billion | 1.29 | $191.54 million | $1.72 | 25.01 |
PACS Group has higher revenue and earnings than LifeStance Health Group. PACS Group 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 owned by institutional investors. 3.5% of LifeStance Health Group shares are owned by company insiders. Comparatively, 70.1% of PACS Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares LifeStance Health Group and PACS Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LifeStance Health Group | 3.19% | 3.39% | 2.33% |
| PACS Group | 4.85% | 29.55% | 5.23% |
Volatility & Risk
LifeStance Health Group has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, PACS Group has a beta of -0.08, indicating that its share price is 108% less volatile than the S&P 500.
Summary
PACS Group beats LifeStance Health Group on 8 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 PACS Group
PACS Group, Inc., through its subsidiaries, operates skilled nursing facilities and assisted living facilities in the United States. The company also provides senior care and independent facilities. It engages in the acquisition, ownership, and leasing of health care-related properties. The company was founded in 2013 and is based in Farmington, Utah.
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