Head-To-Head Review: Teladoc Health (NYSE:TDOC) vs. Weave Communications (NYSE:WEAV)

Weave Communications (NYSE:WEAV) and Teladoc Health (NYSE:TDOC) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Insider and Institutional Ownership

86.8% of Weave Communications shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 16.4% of Weave Communications shares are owned by company insiders. Comparatively, 0.7% of Teladoc Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Weave Communications and Teladoc Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weave Communications	-7.97%	-21.14%	-8.41%
Teladoc Health	-7.13%	-12.15%	-5.83%

Risk & Volatility

Weave Communications has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Earnings and Valuation

This table compares Weave Communications and Teladoc Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weave Communications	$239.02 million	2.45	-$28.05 million	($0.25)	-29.27
Teladoc Health	$2.53 billion	0.45	-$200.32 million	($0.99)	-6.38

Weave Communications has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Weave Communications and Teladoc Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weave Communications	1	5	2	0	2.12
Teladoc Health	1	10	5	0	2.25

Weave Communications presently has a consensus price target of $7.84, indicating a potential upside of 7.15%. Teladoc Health has a consensus price target of $7.54, indicating a potential upside of 19.31%. Given Teladoc Health’s stronger consensus rating and higher possible upside, analysts plainly believe Teladoc Health is more favorable than Weave Communications.

Summary

Teladoc Health beats Weave Communications on 9 of the 14 factors compared between the two stocks.

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.

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.