LifeStance Health Group (NASDAQ:LFST – Get Free Report) and DaVita (NYSE:DVA – Get Free Report) are both mid-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.
Earnings and Valuation
This table compares LifeStance Health Group and DaVita”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LifeStance Health Group | $1.25 billion | 1.61 | -$57.44 million | ($0.05) | -103.40 |
| DaVita | $12.82 billion | 0.74 | $936.34 million | $10.17 | 13.01 |
Institutional and Insider Ownership
85.5% of LifeStance Health Group shares are held by institutional investors. Comparatively, 90.1% of DaVita shares are held by institutional investors. 3.2% of LifeStance Health Group shares are held by company insiders. Comparatively, 1.5% of DaVita shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
LifeStance Health Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, DaVita has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for LifeStance Health Group and DaVita, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LifeStance Health Group | 1 | 0 | 5 | 1 | 2.86 |
| DaVita | 1 | 3 | 0 | 0 | 1.75 |
LifeStance Health Group currently has a consensus price target of $8.50, indicating a potential upside of 64.41%. DaVita has a consensus price target of $158.00, indicating a potential upside of 19.43%. Given LifeStance Health Group’s stronger consensus rating and higher probable upside, research analysts clearly believe LifeStance Health Group is more favorable than DaVita.
Profitability
This table compares LifeStance Health Group and DaVita’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LifeStance Health Group | -1.23% | -1.11% | -0.76% |
| DaVita | 6.35% | 369.39% | 4.62% |
Summary
DaVita 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 DaVita
DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.
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