Reviewing LifeStance Health Group (LFST) and Its Peers

LifeStance Health Group (NASDAQ:LFST) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it weigh in compared to its peers? We will compare LifeStance Health Group to related companies based on the strength of its valuation, profitability, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

85.5% of LifeStance Health Group shares are owned by institutional investors. Comparatively, 56.7% of shares of all “Healthcare Providers & Services” companies are owned by institutional investors. 3.5% of LifeStance Health Group shares are owned by company insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for LifeStance Health Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeStance Health Group	0	4	6	1	2.73
LifeStance Health Group Competitors	1836	7670	13196	813	2.55

LifeStance Health Group currently has a consensus target price of $13.12, indicating a potential upside of 0.19%. As a group, “Healthcare Providers & Services” companies have a potential upside of 12.68%. Given LifeStance Health Group’s peers higher possible upside, analysts plainly believe LifeStance Health Group has less favorable growth aspects than its peers.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
LifeStance Health Group	$1.42 billion	$9.66 million	100.77
LifeStance Health Group Competitors	$21.30 billion	$288.48 million	7.08

LifeStance Health Group’s peers have higher revenue and earnings than LifeStance Health Group. LifeStance Health Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares LifeStance Health Group and its peers’ 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%
LifeStance Health Group Competitors	-7.83%	-141.62%	-1.53%

Risk and Volatility

LifeStance Health Group has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, LifeStance Health Group’s peers have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Summary

LifeStance Health Group beats its peers on 8 of the 13 factors compared.

LifeStance Health Group Company Profile

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.