Contrasting Elevance Health (NYSE:ELV) & BrightSpring Health Services (NASDAQ:BTSG)

Elevance Health (NYSE:ELV) and BrightSpring Health Services (NASDAQ:BTSG) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Earnings & Valuation

This table compares Elevance Health and BrightSpring Health Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elevance Health	$189.25 billion	0.37	$5.98 billion	$23.50	13.36
BrightSpring Health Services	$11.27 billion	0.43	-$18.06 million	$0.31	88.10

Elevance Health has higher revenue and earnings than BrightSpring Health Services. Elevance Health 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.

Insider and Institutional Ownership

89.2% of Elevance Health shares are owned by institutional investors. 0.3% of Elevance Health shares are owned by company insiders. Comparatively, 3.4% of BrightSpring Health Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Elevance Health has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, BrightSpring Health Services has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Elevance Health	2.83%	17.59%	6.36%
BrightSpring Health Services	0.55%	9.29%	2.64%

Analyst Ratings

This is a breakdown of current ratings and price targets for Elevance Health and BrightSpring Health Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elevance Health	0	6	12	0	2.67
BrightSpring Health Services	0	1	11	0	2.92

Elevance Health presently has a consensus price target of $411.06, suggesting a potential upside of 30.95%. BrightSpring Health Services has a consensus price target of $27.10, suggesting a potential downside of 0.77%. Given Elevance Health’s higher possible upside, analysts clearly believe Elevance Health is more favorable than BrightSpring Health Services.

Summary

Elevance Health beats BrightSpring Health Services on 9 of the 14 factors compared between the two stocks.

About Elevance Health

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.

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.