Analyzing Rennova Health (OTCMKTS:RNVA) and Talkspace (NASDAQ:TALK)

Rennova Health (OTCMKTS:RNVA) and Talkspace (NASDAQ:TALK) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

57.4% of Talkspace shares are owned by institutional investors. 55.5% of Rennova Health shares are owned by insiders. Comparatively, 23.5% of Talkspace shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rennova Health	N/A	N/A	N/A
Talkspace	3.40%	6.89%	5.87%

Valuation & Earnings

This table compares Rennova Health and Talkspace”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rennova Health	$18.69 million	0.00	-$7.73 million	N/A	N/A
Talkspace	$228.87 million	3.80	$7.79 million	$0.05	103.80

Talkspace has higher revenue and earnings than Rennova Health.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Rennova Health and Talkspace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rennova Health	0	0	0	0	0.00
Talkspace	0	8	1	0	2.11

Talkspace has a consensus target price of $5.56, indicating a potential upside of 7.18%. Given Talkspace’s stronger consensus rating and higher probable upside, analysts clearly believe Talkspace is more favorable than Rennova Health.

Volatility and Risk

Rennova Health has a beta of 23.78, suggesting that its share price is 2,278% more volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

Talkspace beats Rennova Health on 9 of the 11 factors compared between the two stocks.

About Rennova Health

Rennova Health, Inc., together with its subsidiaries, provides health care services in the United States. It owns one operating hospital in Oneida, Tennessee; and a rural clinic in Williamsburg, Kentucky. The company is based in West Palm Beach, Florida.

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.