GeneDx (NASDAQ:WGS – Get Free Report) and BrightSpring Health Services (NASDAQ:BTSG – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
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% |
Volatility and Risk
GeneDx has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, BrightSpring Health Services has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets 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, suggesting a potential upside of 42.83%. BrightSpring Health Services has a consensus target price of $70.71, suggesting a potential upside of 16.16%. Given GeneDx’s higher probable upside, equities analysts plainly believe GeneDx is more favorable than BrightSpring Health Services.
Institutional and Insider Ownership
61.7% of GeneDx shares are owned by institutional investors. 25.2% of GeneDx shares are owned by insiders. Comparatively, 2.8% of BrightSpring Health Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
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.
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.
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