Contrasting Elevance Health (NYSE:ELV) & biote (NASDAQ:BTMD)

biote (NASDAQ:BTMD) and Elevance Health (NYSE:ELV) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares biote and Elevance Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
biote	-1.08%	-8.61%	4.61%
Elevance Health	2.55%	14.97%	5.31%

Analyst Recommendations

This is a summary of current ratings and target prices for biote and Elevance Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
biote	1	1	1	1	2.50
Elevance Health	0	7	15	0	2.68

biote presently has a consensus target price of $2.50, suggesting a potential upside of 124.01%. Elevance Health has a consensus target price of $456.48, suggesting a potential upside of 6.24%. Given biote’s higher probable upside, equities analysts clearly believe biote is more favorable than Elevance Health.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
biote	$183.53 million	0.22	$27.05 million	($0.10)	-11.16
Elevance Health	$199.12 billion	0.47	$5.66 billion	$23.45	18.32

Elevance Health has higher revenue and earnings than biote. biote is trading at a lower price-to-earnings ratio than Elevance Health, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

biote has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Elevance Health has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Insider and Institutional Ownership

21.7% of biote shares are owned by institutional investors. Comparatively, 89.2% of Elevance Health shares are owned by institutional investors. 32.4% of biote shares are owned by insiders. Comparatively, 0.3% of Elevance Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Elevance Health beats biote on 11 of the 15 factors compared between the two stocks.

About biote

Biote Inc. (NASDAQ: BTMD) is a healthcare company focused on hormone optimization and personalized care. Through its provider-enabled platform, the company supports physicians and other healthcare professionals who offer bioidentical hormone replacement therapy and related wellness services. The company’s offerings include the Biote Method, a hormone pellet therapy program designed for eligible men and women, as well as nutritional supplements, patient education, clinical training, and practice-management support.

About Elevance Health

Elevance Health, Inc. is a U.S. health benefits and services company. Formerly known as Anthem, Inc., it adopted the Elevance Health name in 2022 while retaining the Anthem brand for many of its health plans. The company offers medical, pharmacy, dental, vision and behavioral health coverage, including plans for individuals and employers as well as programs serving Medicare and Medicaid members. Its services also include care management, pharmacy benefit services and other health-related capabilities through its Carelon business.