Establishment Labs (NASDAQ:ESTA – Get Free Report) and Teladoc Health (NYSE:TDOC – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Earnings & Valuation
This table compares Establishment Labs and Teladoc Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Establishment Labs | $211.08 million | 9.17 | -$51.06 million | ($1.49) | -44.13 |
| Teladoc Health | $2.53 billion | 0.45 | -$200.32 million | ($0.97) | -6.56 |
Risk & Volatility
Establishment Labs has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500.
Profitability
This table compares Establishment Labs and Teladoc Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Establishment Labs | -19.05% | -218.77% | -12.31% |
| Teladoc Health | -6.81% | -11.45% | -5.54% |
Institutional & Insider Ownership
72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 76.8% of Teladoc Health shares are held by institutional investors. 10.0% of Establishment Labs shares are held by insiders. Comparatively, 0.7% of Teladoc Health shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Establishment Labs and Teladoc Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Establishment Labs | 1 | 1 | 6 | 0 | 2.63 |
| Teladoc Health | 1 | 12 | 5 | 0 | 2.22 |
Establishment Labs currently has a consensus target price of $87.14, suggesting a potential upside of 32.52%. Teladoc Health has a consensus target price of $7.53, suggesting a potential upside of 18.32%. Given Establishment Labs’ stronger consensus rating and higher possible upside, equities analysts plainly believe Establishment Labs is more favorable than Teladoc Health.
Summary
Teladoc Health beats Establishment Labs on 8 of the 14 factors compared between the two stocks.
About Establishment Labs
Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.
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.
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