Head to Head Review: BrightSpring Health Services (NASDAQ:BTSG) and Avantor (NYSE:AVTR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BrightSpring Health Services	2.27%	14.63%	4.41%
Avantor	-8.42%	9.95%	4.78%

Institutional and Insider Ownership

95.1% of Avantor shares are owned by institutional investors. 2.8% of BrightSpring Health Services shares are owned by insiders. Comparatively, 0.3% of Avantor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrightSpring Health Services	$12.91 billion	0.87	$190.67 million	$1.41	41.06
Avantor	$6.55 billion	0.80	-$530.20 million	($0.81)	-9.43

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

Volatility & Risk

BrightSpring Health Services has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, Avantor has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for BrightSpring Health Services and Avantor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrightSpring Health Services	0	0	15	2	3.12
Avantor	2	11	2	0	2.00

BrightSpring Health Services currently has a consensus price target of $56.29, indicating a potential downside of 2.79%. Avantor has a consensus price target of $10.82, indicating a potential upside of 41.73%. Given Avantor’s higher possible upside, analysts plainly believe Avantor is more favorable than BrightSpring Health Services.

Summary

BrightSpring Health Services beats Avantor on 12 of the 15 factors compared between the two stocks.

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.

About Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.