Financial Comparison: Talkspace (NASDAQ:TALK) vs. Evaxion A/S (NASDAQ:EVAX)

Talkspace (NASDAQ:TALK) and Evaxion A/S (NASDAQ:EVAX) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Risk and Volatility

Talkspace has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Evaxion A/S has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Insider & Institutional Ownership

57.4% of Talkspace shares are owned by institutional investors. Comparatively, 11.0% of Evaxion A/S shares are owned by institutional investors. 23.5% of Talkspace shares are owned by insiders. Comparatively, 41.6% of Evaxion A/S shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Talkspace and Evaxion A/S”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talkspace	$214.59 million	3.00	$1.15 million	$0.03	129.33
Evaxion A/S	$3.34 million	8.39	-$10.57 million	($0.39)	-8.62

Talkspace has higher revenue and earnings than Evaxion A/S. Evaxion A/S is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Talkspace and Evaxion A/S, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talkspace	0	3	4	0	2.57
Evaxion A/S	1	0	3	1	2.80

Talkspace presently has a consensus target price of $4.88, suggesting a potential upside of 25.64%. Evaxion A/S has a consensus target price of $12.33, suggesting a potential upside of 267.06%. Given Evaxion A/S’s stronger consensus rating and higher possible upside, analysts plainly believe Evaxion A/S is more favorable than Talkspace.

Profitability

This table compares Talkspace and Evaxion A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talkspace	1.98%	3.75%	3.17%
Evaxion A/S	N/A	-68.82%	-24.12%

Summary

Talkspace beats Evaxion A/S on 10 of the 15 factors compared between the two stocks.

About Talkspace

Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings; and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. It serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store. Talkspace, Inc. was founded in 2012 and is headquartered in New York, New York.

About Evaxion A/S

Evaxion Biotech A/S, a clinical-stage biotech company, engages in developing artificial intelligence-powered immunotherapies. The company develops EVX-01, which is in phase 2 global multi-center clinical trial for the treatment of metastatic melanoma; EVX-02, a DNA-based vaccine that is in Phase 1/2a trial designed to induce a therapeutic immune response in the adjuvant setting in patients with resected melanoma; and EVX-03, DNA-based cancer vaccine for the treatment of various cancers. Its programs also include some vaccines that are in pre-clinical stage, which includes EVX-B1 for the prevention of S. aureus-induced skin and soft tissue infections in patients undergoing elective abdominal hernia surgery; EVX-B2 to target diseases caused by N. gonorrhoeae; EVX-B3 for eliciting strong humoral antibody and cellular immune response to the bacterial pathogen; and EVX-V1, viral vaccine product candidate for targeting Cytomegalovirus. Evaxion Biotech A/S was incorporated in 2008 and is based in Horsholm, Denmark.