Head-To-Head Review: Talkspace (NASDAQ:TALKW) and Encompass Health (NYSE:EHC)

Encompass Health (NYSE:EHC) and Talkspace (NASDAQ:TALKW) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Earnings & Valuation

This table compares Encompass Health and Talkspace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Encompass Health	$5.94 billion	2.05	$566.20 million	$6.14	20.13
Talkspace	$245.73 million	N/A	N/A	N/A	N/A

Encompass Health has higher revenue and earnings than Talkspace.

Analyst Ratings

This is a summary of recent recommendations and price targets for Encompass Health and Talkspace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Encompass Health	0	1	7	1	3.00
Talkspace	0	0	0	0	0.00

Encompass Health presently has a consensus price target of $148.71, indicating a potential upside of 20.34%. Given Encompass Health’s stronger consensus rating and higher possible upside, equities analysts clearly believe Encompass Health is more favorable than Talkspace.

Insider & Institutional Ownership

97.3% of Encompass Health shares are owned by institutional investors. 1.8% of Encompass Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Encompass Health and Talkspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Encompass Health	10.01%	18.08%	8.22%
Talkspace	N/A	N/A	N/A

Summary

Encompass Health beats Talkspace on 10 of the 10 factors compared between the two stocks.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions. It offers services through the Medicare program to federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. The company was incorporated in 1984 and is based in Birmingham, Alabama.

About Talkspace

Talkspace, Inc. operates as a virtual behavioral healthcare company. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans through both business-to-business and business-to-consumer channels. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace for Business for employees to access its platform services on a benefit plan paid by the employer; and Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan, that provides online therapy to employees through EAP and behavioral health benefits. Talkspace, Inc. was founded in 2012 and is based in New York, New York.