Zhongchao (NASDAQ:ZCMD – Get Free Report) and Talkspace (NASDAQ:TALK – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk and Volatility
Zhongchao has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Institutional & Insider Ownership
1.7% of Zhongchao shares are held by institutional investors. Comparatively, 57.4% of Talkspace shares are held by institutional investors. 28.6% of Zhongchao shares are held by company insiders. Comparatively, 23.5% of Talkspace shares are held by company 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zhongchao | 1 | 0 | 0 | 0 | 1.00 |
| Talkspace | 1 | 7 | 1 | 0 | 2.00 |
Talkspace has a consensus price target of $5.56, indicating a potential upside of 7.18%. Given Talkspace’s stronger consensus rating and higher possible upside, analysts plainly believe Talkspace is more favorable than Zhongchao.
Earnings and Valuation
This table compares Zhongchao and Talkspace”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zhongchao | $11.38 million | 0.00 | -$6.31 million | N/A | N/A |
| Talkspace | $228.87 million | 3.80 | $7.79 million | $0.01 | 519.00 |
Talkspace has higher revenue and earnings than Zhongchao.
Profitability
This table compares Zhongchao and Talkspace’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zhongchao | N/A | N/A | N/A |
| Talkspace | 0.49% | 1.03% | 0.88% |
Summary
Talkspace beats Zhongchao on 11 of the 12 factors compared between the two stocks.
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.
About Talkspace
Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings; and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. It serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store. Talkspace, Inc. was founded in 2012 and is headquartered in New York, New York.
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