Reviewing BrightSpring Health Services (NASDAQ:BTSG) and Cencora (NYSE:COR)

Cencora (NYSE:COR) and BrightSpring Health Services (NASDAQ:BTSG) are both large-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cencora	0.79%	125.45%	4.18%
BrightSpring Health Services	2.55%	16.73%	5.24%

Valuation & Earnings

This table compares Cencora and BrightSpring Health Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cencora	$321.33 billion	0.20	$1.55 billion	$13.46	25.30
BrightSpring Health Services	$12.91 billion	0.93	$190.67 million	$1.66	36.67

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

Insider & Institutional Ownership

97.5% of Cencora shares are owned by institutional investors. 0.4% of Cencora shares are owned by insiders. Comparatively, 2.8% of BrightSpring Health Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cencora and BrightSpring Health Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cencora	0	4	14	0	2.78
BrightSpring Health Services	0	2	17	1	2.95

Cencora currently has a consensus target price of $363.81, indicating a potential upside of 6.83%. BrightSpring Health Services has a consensus target price of $70.71, indicating a potential upside of 16.16%. Given BrightSpring Health Services’ stronger consensus rating and higher probable upside, analysts plainly believe BrightSpring Health Services is more favorable than Cencora.

Volatility and Risk

Cencora has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, BrightSpring Health Services has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Summary

BrightSpring Health Services beats Cencora on 10 of the 15 factors compared between the two stocks.

About Cencora

Cencora, Inc. sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers. This segment also distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services to physicians who specialize in various disease states, such as oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. Its International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers, and hospitals primarily in Europe; and provides specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.

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.