Reviewing Zhongchao (NASDAQ:ZCMD) & LifeMD (NASDAQ:LFMD)

LifeMD (NASDAQ:LFMD) and Zhongchao (NASDAQ:ZCMD) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Risk and Volatility

LifeMD has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, Zhongchao has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500.

Valuation and Earnings

This table compares LifeMD and Zhongchao”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeMD	$194.05 million	0.82	$14.35 million	($0.05)	-66.20
Zhongchao	$11.38 million	0.09	-$6.31 million	N/A	N/A

LifeMD has higher revenue and earnings than Zhongchao.

Analyst Recommendations

This is a breakdown of current ratings and target prices for LifeMD and Zhongchao, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeMD	1	1	8	0	2.70
Zhongchao	1	0	0	0	1.00

LifeMD currently has a consensus target price of $7.57, indicating a potential upside of 128.74%. Given LifeMD’s stronger consensus rating and higher possible upside, equities analysts plainly believe LifeMD is more favorable than Zhongchao.

Insider and Institutional Ownership

35.5% of LifeMD shares are held by institutional investors. Comparatively, 1.7% of Zhongchao shares are held by institutional investors. 17.2% of LifeMD shares are held by insiders. Comparatively, 28.6% of Zhongchao shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares LifeMD and Zhongchao’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LifeMD	0.10%	-168.23%	-31.27%
Zhongchao	N/A	N/A	N/A

Summary

LifeMD beats Zhongchao on 9 of the 12 factors compared between the two stocks.

About LifeMD

LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.