SOPHiA GENETICS (NASDAQ:SOPH – Get Free Report) and Talkspace (NASDAQ:TALK – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Profitability
This table compares SOPHiA GENETICS and Talkspace’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SOPHiA GENETICS | -44.48% | -62.74% | -21.85% |
| Talkspace | 0.49% | 1.03% | 0.88% |
Analyst Ratings
This is a summary of current ratings and price targets for SOPHiA GENETICS and Talkspace, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SOPHiA GENETICS | 1 | 0 | 2 | 0 | 2.33 |
| Talkspace | 1 | 7 | 1 | 0 | 2.00 |
Insider and Institutional Ownership
31.6% of SOPHiA GENETICS shares are held by institutional investors. Comparatively, 57.4% of Talkspace shares are held by institutional investors. 4.9% of SOPHiA GENETICS shares are held by insiders. Comparatively, 23.5% of Talkspace shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
SOPHiA GENETICS has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Earnings and Valuation
This table compares SOPHiA GENETICS and Talkspace”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SOPHiA GENETICS | $77.27 million | 6.24 | -$79.00 million | ($0.52) | -11.06 |
| Talkspace | $228.87 million | 3.82 | $7.79 million | $0.01 | 522.00 |
Talkspace has higher revenue and earnings than SOPHiA GENETICS. SOPHiA GENETICS is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.
Summary
Talkspace beats SOPHiA GENETICS on 10 of the 14 factors compared between the two stocks.
About SOPHiA GENETICS
SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.
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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