Teladoc Health (NYSE:TDOC – Get Free Report) and GoodRx (NASDAQ:GDRX – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
Volatility & Risk
Teladoc Health has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.
Valuation and Earnings
This table compares Teladoc Health and GoodRx”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teladoc Health | $2.57 billion | 0.32 | -$1.00 billion | ($1.28) | -3.64 |
| GoodRx | $792.32 million | 0.93 | $16.39 million | $0.09 | 24.22 |
GoodRx has lower revenue, but higher earnings than Teladoc Health. Teladoc Health is trading at a lower price-to-earnings ratio than GoodRx, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Teladoc Health and GoodRx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teladoc Health | -8.84% | -10.59% | -4.77% |
| GoodRx | 3.97% | 9.73% | 4.79% |
Institutional and Insider Ownership
76.8% of Teladoc Health shares are held by institutional investors. Comparatively, 63.8% of GoodRx shares are held by institutional investors. 0.6% of Teladoc Health shares are held by company insiders. Comparatively, 4.2% of GoodRx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Teladoc Health and GoodRx, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teladoc Health | 1 | 12 | 3 | 0 | 2.13 |
| GoodRx | 3 | 7 | 5 | 0 | 2.13 |
Teladoc Health presently has a consensus target price of $9.12, suggesting a potential upside of 95.82%. GoodRx has a consensus target price of $4.73, suggesting a potential upside of 116.93%. Given GoodRx’s stronger consensus rating and higher possible upside, analysts clearly believe GoodRx is more favorable than Teladoc Health.
Summary
GoodRx beats Teladoc Health on 11 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 GoodRx
GoodRx Holdings, Inc., together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices. It also offers other healthcare products and services, including subscriptions, and pharma manufacturer solutions, as well as telehealth services through the GoodRx Care platform. It serves pharmacy benefit managers who manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was founded in 2011 and is headquartered in Santa Monica, California.
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