Comparing Teladoc Health (NYSE:TDOC) & Health Catalyst (NASDAQ:HCAT)

Health Catalyst (NASDAQ:HCAT) and Teladoc Health (NYSE:TDOC) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Risk and Volatility

Health Catalyst has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Insider & Institutional Ownership

85.0% of Health Catalyst shares are held by institutional investors. Comparatively, 76.8% of Teladoc Health shares are held by institutional investors. 19.4% of Health Catalyst shares are held by company insiders. Comparatively, 0.7% of Teladoc Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Health Catalyst and Teladoc Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Health Catalyst	-90.61%	-1.83%	-0.80%
Teladoc Health	-7.13%	-12.15%	-5.83%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Health Catalyst and Teladoc Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Health Catalyst	1	7	3	0	2.18
Teladoc Health	1	10	5	0	2.25

Health Catalyst presently has a consensus price target of $2.45, suggesting a potential upside of 40.80%. Teladoc Health has a consensus price target of $7.54, suggesting a potential upside of 23.60%. Given Health Catalyst’s higher probable upside, research analysts plainly believe Health Catalyst is more favorable than Teladoc Health.

Earnings and Valuation

This table compares Health Catalyst and Teladoc Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Health Catalyst	$292.25 million	0.45	-$177.97 million	($3.68)	-0.47
Teladoc Health	$2.49 billion	0.44	-$200.32 million	($0.99)	-6.16

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

Summary

Health Catalyst beats Teladoc Health on 8 of the 14 factors compared between the two stocks.

About Health Catalyst

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.

About Teladoc Health

Teladoc Health, Inc. provides virtual healthcare services worldwide. The company operates through Teladoc Health Integrated Care and BetterHelp segments. The Integrated Care segment offers virtual medical services, including general medical, expert medical, specialty medical, chronic condition management, and mental health, as well as enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment operates a mental health platform that provides online counseling and therapy services through website, mobile applications, phones, and text-based interactions by its licensed clinicians. The company offers its products and services under the Teladoc, Livongo, and BetterHelp brands. It serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. Teladoc Health, Inc. was incorporated in 2002 and is headquartered in Purchase, New York.