Comparing BrightSpring Health Services (NASDAQ:BTSG) and GeneDx (NASDAQ:WGS)

GeneDx (NASDAQ:WGS) and BrightSpring Health Services (NASDAQ:BTSG) are both healthcare 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.

Insider and Institutional Ownership

61.7% of GeneDx shares are held by institutional investors. 25.2% of GeneDx shares are held by company insiders. Comparatively, 2.8% of BrightSpring Health Services 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.

Profitability

This table compares GeneDx and BrightSpring Health Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GeneDx	-23.41%	4.12%	2.26%
BrightSpring Health Services	2.55%	16.73%	5.24%

Valuation and Earnings

This table compares GeneDx and BrightSpring Health Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$427.54 million	4.44	-$21.02 million	($3.64)	-17.48
BrightSpring Health Services	$12.91 billion	0.93	$190.67 million	$1.66	36.67

BrightSpring Health Services has higher revenue and earnings than GeneDx. GeneDx is trading at a lower price-to-earnings ratio than BrightSpring Health Services, 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 GeneDx and BrightSpring Health Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneDx	1	1	7	0	2.67
BrightSpring Health Services	0	2	17	1	2.95

GeneDx currently has a consensus target price of $90.86, indicating a potential upside of 42.83%. BrightSpring Health Services has a consensus target price of $70.71, indicating a potential upside of 16.16%. Given GeneDx’s higher possible upside, research analysts clearly believe GeneDx is more favorable than BrightSpring Health Services.

Volatility and Risk

GeneDx has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, BrightSpring Health Services has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Summary

BrightSpring Health Services beats GeneDx on 10 of the 15 factors compared between the two stocks.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.

About BrightSpring Health Services

BrightSpring Health Services, Inc. operates a home and community-based healthcare services platform in the United States. The company's platform focuses on delivering pharmacy and provider services, including clinical and supportive care in home and community settings to Medicare, Medicaid, and insured populations. It serves patients through clinical providers and pharmacists. The company was formerly known as Phoenix Parent Holdings Inc. and changed its name to BrightSpring Health Services, Inc. in May 2021. BrightSpring Health Services, Inc. was founded in 1974 and is headquartered in Louisville, Kentucky.