WallStSmart

BrightSpring Health Services, Inc. Common Stock (BTSG)vsHealthEquity Inc (HQY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BrightSpring Health Services, Inc. Common Stock generates 955% more annual revenue ($14.37B vs $1.36B). HQY leads profitability with a 17.4% profit margin vs 2.5%. HQY trades at a lower P/E of 34.1x. HQY earns a higher WallStSmart Score of 62/100 (C+).

BTSG

Buy

55

out of 100

Grade: C

Growth: 8.7Profit: 5.0Value: 4.0Quality: 6.0
Piotroski: 5/9Altman Z: 2.59

HQY

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 6.7Quality: 7.5
Piotroski: 7/9Altman Z: 1.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BTSG.

HQYUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$184.63

Current Price

$91.75

$92.88 discount

UndervaluedFair: $184.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTSG2 strengths · Avg: 9.0/10
EPS GrowthGrowth
196.6%10/10

Earnings expanding 196.6% YoY

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

HQY1 strengths · Avg: 8.0/10
Operating MarginProfitability
28.4%8/10

Strong operational efficiency at 28.4%

Areas to Watch

BTSG4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

Debt/EquityHealth
1.173/10

Elevated debt levels

P/E RatioValuation
50.7x2/10

Premium valuation, high expectations priced in

HQY2 concerns · Avg: 4.0/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BTSG

The strongest argument for BTSG centers on EPS Growth, Revenue Growth. Revenue growth of 23.0% demonstrates continued momentum.

Bull Case : HQY

The strongest argument for HQY centers on Operating Margin. Profitability is solid with margins at 17.4% and operating margin at 28.4%. PEG of 1.38 suggests the stock is reasonably priced for its growth.

Bear Case : BTSG

The primary concerns for BTSG are Profit Margin, Operating Margin, Debt/Equity. A P/E of 50.7x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

BTSG profiles as a growth stock while HQY is a mature play — different risk/reward profiles.

BTSG carries more volatility with a beta of 1.85 — expect wider price swings.

BTSG is growing revenue faster at 23.0% — sustainability is the question.

HQY generates stronger free cash flow (135M), providing more financial flexibility.

Bottom Line

HQY scores higher overall (62/100 vs 55/100), backed by strong 17.4% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

BrightSpring Health Services, Inc. Common Stock

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

BrightSpring Health Services, Inc. (BTSG) is a leading provider of home and community-based health services, focusing on diverse patient populations, including individuals with intellectual and developmental disabilities and those in need of rehabilitation support. The company prioritizes personalized, high-quality care, facilitated by a dedicated and skilled workforce that significantly improves patient outcomes and quality of life. With robust investments in innovative technologies and a strong commitment to value-based care, BrightSpring is well-positioned to capitalize on growth opportunities within the dynamic healthcare landscape, highlighting its potential for sustainable, long-term success.

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HealthEquity Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.

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