Talkspace (NASDAQ:TALK – Get Free Report) and SOPHiA GENETICS (NASDAQ:SOPH – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Talkspace and SOPHiA GENETICS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talkspace | 1 | 7 | 1 | 0 | 2.00 |
| SOPHiA GENETICS | 1 | 0 | 2 | 0 | 2.33 |
Talkspace currently has a consensus price target of $5.56, suggesting a potential upside of 6.56%. SOPHiA GENETICS has a consensus price target of $7.50, suggesting a potential upside of 30.43%. Given SOPHiA GENETICS’s stronger consensus rating and higher probable upside, analysts clearly believe SOPHiA GENETICS is more favorable than Talkspace.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talkspace | $228.87 million | 3.82 | $7.79 million | $0.01 | 522.00 |
| SOPHiA GENETICS | $77.27 million | 6.24 | -$79.00 million | ($0.52) | -11.06 |
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.
Profitability
This table compares Talkspace and SOPHiA GENETICS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talkspace | 0.49% | 1.03% | 0.88% |
| SOPHiA GENETICS | -44.48% | -62.74% | -21.85% |
Risk & Volatility
Talkspace has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, SOPHiA GENETICS has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Insider and Institutional Ownership
57.4% of Talkspace shares are owned by institutional investors. Comparatively, 31.6% of SOPHiA GENETICS shares are owned by institutional investors. 23.5% of Talkspace shares are owned by insiders. Comparatively, 4.9% of SOPHiA GENETICS shares are owned 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.
Summary
Talkspace beats SOPHiA GENETICS on 10 of the 14 factors compared between the two stocks.
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.
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.
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