Teladoc Health (NYSE:TDOC – Get Free Report) and OptimizeRx (NASDAQ:OPRX – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Insider & Institutional Ownership
76.8% of Teladoc Health shares are owned by institutional investors. Comparatively, 76.5% of OptimizeRx shares are owned by institutional investors. 0.7% of Teladoc Health shares are owned by insiders. Comparatively, 7.5% of OptimizeRx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Teladoc Health and OptimizeRx, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teladoc Health | 1 | 10 | 5 | 0 | 2.25 |
| OptimizeRx | 1 | 2 | 6 | 0 | 2.56 |
Volatility and Risk
Teladoc Health has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares Teladoc Health and OptimizeRx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teladoc Health | -7.13% | -12.15% | -5.83% |
| OptimizeRx | 4.66% | 9.44% | 7.11% |
Valuation & Earnings
This table compares Teladoc Health and OptimizeRx”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teladoc Health | $2.49 billion | 0.40 | -$200.32 million | ($0.99) | -5.59 |
| OptimizeRx | $98.65 million | 1.64 | $5.13 million | $0.23 | 37.26 |
OptimizeRx has lower revenue, but higher earnings 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.
Summary
OptimizeRx beats Teladoc Health on 10 of the 14 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 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.
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