Teladoc Health (NYSE:TDOC – Get Free Report) and Waystar (NASDAQ:WAY – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Risk and Volatility
Teladoc Health has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Waystar has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.
Insider & Institutional Ownership
76.8% of Teladoc Health shares are owned by institutional investors. 0.7% of Teladoc Health shares are owned by company insiders. Comparatively, 3.5% of Waystar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teladoc Health | 1 | 10 | 5 | 0 | 2.25 |
| Waystar | 0 | 4 | 18 | 2 | 2.92 |
Teladoc Health currently has a consensus price target of $7.54, indicating a potential upside of 23.60%. Waystar has a consensus price target of $34.67, indicating a potential upside of 40.35%. Given Waystar’s stronger consensus rating and higher possible upside, analysts clearly believe Waystar is more favorable than Teladoc Health.
Earnings & Valuation
This table compares Teladoc Health and Waystar”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teladoc Health | $2.53 billion | 0.44 | -$200.32 million | ($0.99) | -6.16 |
| Waystar | $1.10 billion | 4.31 | $112.09 million | $0.70 | 35.29 |
Waystar has lower revenue, but higher earnings than Teladoc Health. Teladoc Health is trading at a lower price-to-earnings ratio than Waystar, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Teladoc Health and Waystar’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% |
| Waystar | 11.18% | 7.03% | 4.75% |
Summary
Waystar beats Teladoc Health on 12 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 Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
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