Life Healthcare Group (OTCMKTS:LTGHY) versus InnovAge (OTCMKTS:INNV) Critical Survey

InnovAge (OTCMKTS:INNV) and Life Healthcare Group (OTCMKTS:LTGHY) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for InnovAge and Life Healthcare Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	0	0	0	0	N/A
Life Healthcare Group	0	0	0	0	N/A

Valuation and Earnings

This table compares InnovAge and Life Healthcare Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$741.33 million	0.91	-$6.52 million	($0.24)	-20.67
Life Healthcare Group	N/A	N/A	N/A	$10.67	0.26

Life Healthcare Group has lower revenue, but higher earnings than InnovAge. InnovAge is trading at a lower price-to-earnings ratio than Life Healthcare Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares InnovAge and Life Healthcare Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnovAge	-6.17%	-13.04%	-7.48%
Life Healthcare Group	N/A	N/A	N/A

Institutional and Insider Ownership

12.3% of InnovAge shares are held by institutional investors. 0.4% of InnovAge shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Life Healthcare Group beats InnovAge on 5 of the 8 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

About Life Healthcare Group

Life Healthcare Group Holdings Limited, together with its subsidiaries, operates private hospitals in South Africa, Canada, the United Kingdom, rest of Europe, and Internationally. It operates through two segments, Hospitals and Complementary Services; and Healthcare Services. The company provides range of acute hospitals and complementary services; Life Esidimeni services, such as chronic mental healthcare, frail care rehabilitation, step-down care, correctional services, and primary healthcare and substance abuse recovery programs; and life employee health solutions, including on-site occupational and primary healthcare services and employee wellness programs. It also offers services in the areas of diagnostics, mental health, acute rehabilitation, renal dialysis, oncology, cardiology, neurology, orthopedic, pediatric, dermatology, ophthalmology, gynecology, and obstetric. In addition, the company provides diagnostic imaging services; magnetic resonance imaging and computerized tomography scanners; develops, manufactures, and distributes radiopharmaceuticals for use in positron emission tomography-computerized tomography (PET-CT) diagnostics. The company was formerly known as Afrox Healthcare Limited and changed its name to Life Healthcare Group Holdings Limited in January 2005. Life Healthcare Group Holdings Limited was founded in 1983 and is headquartered in Johannesburg, South Africa.