Teladoc Health (NYSE:TDOC – Get Free Report) and Weave Communications (NYSE:WEAV – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
76.8% of Teladoc Health shares are held by institutional investors. Comparatively, 86.8% of Weave Communications shares are held by institutional investors. 0.7% of Teladoc Health shares are held by insiders. Comparatively, 16.4% of Weave Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Teladoc Health and Weave Communications’ 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% |
| Weave Communications | -7.97% | -21.14% | -8.41% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teladoc Health | 1 | 10 | 5 | 0 | 2.25 |
| Weave Communications | 1 | 5 | 2 | 0 | 2.12 |
Teladoc Health currently has a consensus target price of $7.54, indicating a potential upside of 23.03%. Weave Communications has a consensus target price of $7.84, indicating a potential upside of 6.74%. Given Teladoc Health’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Teladoc Health is more favorable than Weave Communications.
Risk & Volatility
Teladoc Health has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.
Valuation and Earnings
This table compares Teladoc Health and Weave Communications”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teladoc Health | $2.53 billion | 0.44 | -$200.32 million | ($0.99) | -6.19 |
| Weave Communications | $239.02 million | 2.46 | -$28.05 million | ($0.25) | -29.38 |
Weave Communications has lower revenue, but higher earnings than Teladoc Health. Weave Communications is trading at a lower price-to-earnings ratio than Teladoc Health, indicating that it is currently the more affordable of the two stocks.
Summary
Teladoc Health beats Weave Communications on 9 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 Weave Communications
Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.
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