Head to Head Review: LifeMD (NASDAQ:LFMD) vs. Labcorp (NYSE:LH)

Labcorp (NYSE:LH) and LifeMD (NASDAQ:LFMD) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares Labcorp and LifeMD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Labcorp	6.66%	16.29%	7.62%
LifeMD	2.37%	-150.88%	-22.59%

Volatility & Risk

Labcorp has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, LifeMD has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Insider & Institutional Ownership

95.9% of Labcorp shares are held by institutional investors. Comparatively, 35.5% of LifeMD shares are held by institutional investors. 0.8% of Labcorp shares are held by company insiders. Comparatively, 18.4% of LifeMD shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Labcorp and LifeMD”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Labcorp	$13.95 billion	1.56	$876.50 million	$11.29	23.54
LifeMD	$194.05 million	1.22	$14.35 million	$0.05	97.80

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

Analyst Ratings

This is a summary of current recommendations for Labcorp and LifeMD, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Labcorp	0	3	8	0	2.73
LifeMD	1	1	8	0	2.70

Labcorp presently has a consensus target price of $308.00, suggesting a potential upside of 15.88%. LifeMD has a consensus target price of $9.14, suggesting a potential upside of 86.97%. Given LifeMD’s higher probable upside, analysts clearly believe LifeMD is more favorable than Labcorp.

Summary

Labcorp beats LifeMD on 9 of the 13 factors compared between the two stocks.

About Labcorp

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

About LifeMD

LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.