Head-To-Head Analysis: Teladoc Health (NYSE:TDOC) vs. OptimizeRx (NASDAQ:OPRX)

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

Institutional and Insider Ownership

76.5% of OptimizeRx shares are held by institutional investors. Comparatively, 76.8% of Teladoc Health shares are held by institutional investors. 7.5% of OptimizeRx shares are held by insiders. Comparatively, 0.7% of Teladoc Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares OptimizeRx and Teladoc Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$109.43 million	1.43	$5.13 million	$0.23	36.00
Teladoc Health	$2.53 billion	0.42	-$200.32 million	($0.99)	-5.84

OptimizeRx has higher earnings, but lower revenue than Teladoc Health. Teladoc Health is trading at a lower price-to-earnings ratio than OptimizeRx, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for OptimizeRx and Teladoc Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	2	6	0	2.56
Teladoc Health	1	10	5	0	2.25

OptimizeRx currently has a consensus target price of $11.57, suggesting a potential upside of 39.75%. Teladoc Health has a consensus target price of $7.54, suggesting a potential upside of 30.35%. Given OptimizeRx’s stronger consensus rating and higher possible upside, research analysts plainly believe OptimizeRx is more favorable than Teladoc Health.

Volatility & Risk

OptimizeRx has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	4.66%	9.44%	7.11%
Teladoc Health	-7.13%	-12.15%	-5.83%

Summary

OptimizeRx beats Teladoc Health on 11 of the 14 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

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.