Teladoc Health (NYSE:TDOC) & PACS Group (NYSE:PACS) Critical Contrast

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

Analyst Recommendations

This is a breakdown of recent ratings for Teladoc Health and PACS Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teladoc Health	1	11	6	1	2.37
PACS Group	1	1	3	0	2.40

Teladoc Health currently has a consensus target price of $9.97, indicating a potential upside of 5.10%. PACS Group has a consensus target price of $26.25, indicating a potential upside of 106.86%. Given PACS Group’s stronger consensus rating and higher possible upside, analysts plainly believe PACS Group is more favorable than Teladoc Health.

Institutional & Insider Ownership

76.8% of Teladoc Health shares are held by institutional investors. 0.6% of Teladoc Health shares are held 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.

Volatility & Risk

Teladoc Health has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, PACS Group has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Valuation & Earnings

This table compares Teladoc Health and PACS Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teladoc Health	$2.57 billion	0.65	-$1.00 billion	($1.19)	-7.97
PACS Group	$3.11 billion	0.62	$112.87 million	$0.31	40.94

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teladoc Health	-8.16%	-10.13%	-4.43%
PACS Group	N/A	N/A	N/A

Summary

PACS Group beats Teladoc Health on 9 of the 15 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 PACS Group

PACS Group, Inc., through its subsidiaries, operates skilled nursing facilities and assisted living facilities in the United States. The company also provides senior care and independent facilities. It engages in the acquisition, ownership, and leasing of health care-related properties. The company was founded in 2013 and is based in Farmington, Utah.