10x Genomics (NASDAQ:TXG) and Talkspace (NASDAQ:TALK) Critical Analysis

10x Genomics (NASDAQ:TXG) and Talkspace (NASDAQ:TALK) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for 10x Genomics and Talkspace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
10x Genomics	2	10	5	0	2.18
Talkspace	0	8	1	0	2.11

10x Genomics currently has a consensus target price of $18.89, suggesting a potential downside of 13.41%. Talkspace has a consensus target price of $5.56, suggesting a potential upside of 7.80%. Given Talkspace’s higher possible upside, analysts clearly believe Talkspace is more favorable than 10x Genomics.

Insider & Institutional Ownership

84.7% of 10x Genomics shares are owned by institutional investors. Comparatively, 57.4% of Talkspace shares are owned by institutional investors. 9.4% of 10x Genomics shares are owned by insiders. Comparatively, 23.5% of Talkspace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

10x Genomics has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Earnings & Valuation

This table compares 10x Genomics and Talkspace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
10x Genomics	$642.82 million	4.34	-$43.54 million	($0.35)	-62.34
Talkspace	$228.87 million	3.77	$7.79 million	$0.05	103.20

Talkspace has lower revenue, but higher earnings than 10x Genomics. 10x Genomics is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 10x Genomics and Talkspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
10x Genomics	-6.77%	-6.89%	-5.34%
Talkspace	3.40%	6.89%	5.87%

Summary

Talkspace beats 10x Genomics on 8 of the 14 factors compared between the two stocks.

About 10x Genomics

10x Genomics, Inc., a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products. Its single cell solutions runs on its chromium instruments, which include single cell gene expression for measuring gene activity and networks on a cell-by-cell basis; single cell gene expression flex; single cell immune profiling used to study the immune system; single cell Assay for Transposase Accessible Chromati (ATAC) solution to understand the epigenetic state; and single cell multiome ATAC + gene expression which enables simultaneous interrogation of both the RNA and chromatin accessibility, using ATAC in a single cell. The company also provides Visium platform which enables researchers to understand the spatial positions of biological analytes within tissues at high resolution; and Xenium platform for in situ analysis. It serves various academic, government, biopharmaceutical, biotechnology, and other institutions. The company was formerly known as 10X Technologies, Inc. and changed its name to 10x Genomics, Inc. in November 2014. 10x Genomics, Inc. was incorporated in 2012 and is headquartered in Pleasanton, California.

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.