HealthStream (NASDAQ:HSTM – Get Free Report) and Teladoc Health (NYSE:TDOC – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Institutional and Insider Ownership
69.6% of HealthStream shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 20.4% of HealthStream shares are owned by company insiders. Comparatively, 0.7% of Teladoc Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares HealthStream and Teladoc Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HealthStream | $304.06 million | 3.03 | $18.34 million | $0.72 | 43.81 |
| Teladoc Health | $2.49 billion | 0.42 | -$200.32 million | ($0.99) | -5.82 |
HealthStream has higher earnings, but lower revenue than Teladoc Health. Teladoc Health is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares HealthStream and Teladoc Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HealthStream | 6.60% | 6.81% | 4.64% |
| Teladoc Health | -7.13% | -12.15% | -5.83% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for HealthStream and Teladoc Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HealthStream | 0 | 3 | 0 | 0 | 2.00 |
| Teladoc Health | 1 | 10 | 5 | 0 | 2.25 |
HealthStream presently has a consensus price target of $27.00, indicating a potential downside of 14.39%. Teladoc Health has a consensus price target of $7.54, indicating a potential upside of 30.69%. Given Teladoc Health’s stronger consensus rating and higher possible upside, analysts plainly believe Teladoc Health is more favorable than HealthStream.
Risk & Volatility
HealthStream has a beta of 0.42, suggesting that its stock price is 58% less 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.
Summary
HealthStream beats Teladoc Health on 8 of the 14 factors compared between the two stocks.
About HealthStream
HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company’s solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs. It offers hStream, a technology platform that powers a range of healthcare workforce solutions. The company provides its solutions to customers across a range of entities within the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through its direct sales teams. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.
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.
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