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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teladoc Health	$2.53 billion	0.42	-$200.32 million	($0.99)	-5.95
Health Catalyst	$311.14 million	0.43	-$177.97 million	($3.68)	-0.48

Health Catalyst has lower revenue, but higher earnings 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.

Profitability

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

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

Institutional & Insider Ownership

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

Analyst Ratings

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

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

Teladoc Health currently has a consensus target price of $7.54, suggesting a potential upside of 27.83%. Health Catalyst has a consensus target price of $2.45, suggesting a potential upside of 38.42%. Given Health Catalyst’s higher possible upside, analysts clearly believe Health Catalyst is more favorable than Teladoc Health.

Volatility and Risk

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

Summary

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

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.

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.