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 900% more annual revenue ($12.91B vs $1.29B). BTSG leads profitability with a 148.0% profit margin vs 14.9%. HQY trades at a lower P/E of 36.1x. HQY earns a higher WallStSmart Score of 64/100 (C+).

BTSG

Buy

54

out of 100

Grade: C-

Growth: 8.7Profit: 6.0Value: 3.0Quality: 7.5
Piotroski: 5/9Altman Z: 2.62

HQY

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 9.3Quality: 6.5
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BTSGSignificantly Overvalued (-78.4%)

Margin of Safety

-78.4%

Fair Value

$22.46

Current Price

$41.21

$18.75 premium

UndervaluedFair: $22.46Overvalued
HQYUndervalued (+24.6%)

Margin of Safety

+24.6%

Fair Value

$102.02

Current Price

$81.02

$21.00 discount

UndervaluedFair: $102.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BTSG3 strengths · Avg: 9.3/10
Profit MarginProfitability
148.0%10/10

Keeps 148 of every $100 in revenue as profit

EPS GrowthGrowth
338.3%10/10

Earnings expanding 338.3% YoY

Revenue GrowthGrowth
29.3%8/10

Revenue surging 29.3% year-over-year

HQY3 strengths · Avg: 8.7/10
EPS GrowthGrowth
883.0%10/10

Earnings expanding 883.0% YoY

PEG RatioValuation
0.708/10

Growing faster than its price suggests

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

Areas to Watch

BTSG4 concerns · Avg: 2.8/10
Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Operating MarginProfitability
3.0%3/10

Operating margin of 3.0%

Debt/EquityHealth
1.483/10

Elevated debt levels

P/E RatioValuation
87.7x2/10

Premium valuation, high expectations priced in

HQY1 concerns · Avg: 4.0/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BTSG

The strongest argument for BTSG centers on Profit Margin, EPS Growth, Revenue Growth. Profitability is solid with margins at 148.0% and operating margin at 3.0%. Revenue growth of 29.3% demonstrates continued momentum.

Bull Case : HQY

The strongest argument for HQY centers on EPS Growth, PEG Ratio, Operating Margin. PEG of 0.70 suggests the stock is reasonably priced for its growth.

Bear Case : BTSG

The primary concerns for BTSG are Return on Equity, Operating Margin, Debt/Equity. A P/E of 87.7x leaves little room for execution misses.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio.

Key Dynamics to Monitor

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

BTSG carries more volatility with a beta of 2.33 — expect wider price swings.

BTSG is growing revenue faster at 29.3% — sustainability is the question.

BTSG generates stronger free cash flow (174M), providing more financial flexibility.

Bottom Line

HQY scores higher overall (64/100 vs 54/100). 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, specializing in meeting the intricate needs of a diverse patient population, including individuals with intellectual and developmental disabilities as well as those requiring rehabilitation. The company emphasizes personalized care solutions backed by a highly trained workforce, ensuring exceptional patient outcomes. BrightSpring's strategic investment in technology and commitment to quality enable it to thrive in the growing market for value-based care, making it well-positioned to capitalize on the ongoing evolution of the healthcare landscape.

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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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