Teladoc Health (NYSE:TDOC – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Risk and Volatility
Teladoc Health has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500. Comparatively, Beauty Health has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.
Profitability
This table compares Teladoc Health and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teladoc Health | -7.92% | -9.13% | -4.26% |
| Beauty Health | -3.16% | -15.40% | -1.74% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teladoc Health | 1 | 14 | 6 | 0 | 2.24 |
| Beauty Health | 2 | 5 | 1 | 0 | 1.88 |
Teladoc Health currently has a consensus price target of $7.72, indicating a potential upside of 43.67%. Beauty Health has a consensus price target of $2.42, indicating a potential upside of 102.51%. Given Beauty Health’s higher possible upside, analysts clearly believe Beauty Health is more favorable than Teladoc Health.
Valuation & Earnings
This table compares Teladoc Health and Beauty Health”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 | 0.38 | -$200.32 million | ($1.14) | -4.71 |
| Beauty Health | $300.80 million | 0.51 | -$9.52 million | ($0.20) | -5.98 |
Beauty Health has lower revenue, but higher earnings than Teladoc Health. Beauty Health is trading at a lower price-to-earnings ratio than Teladoc Health, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
76.8% of Teladoc Health shares are owned by institutional investors. Comparatively, 93.3% of Beauty Health shares are owned by institutional investors. 0.6% of Teladoc Health shares are owned by insiders. Comparatively, 41.0% of Beauty Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Beauty Health 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 Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
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