Teladoc Health (NYSE:TDOC) and InnovAge (NASDAQ:INNV) Critical Survey

Teladoc Health (NYSE:TDOC) and InnovAge (NASDAQ:INNV) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

Teladoc Health has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Insider and Institutional Ownership

76.8% of Teladoc Health shares are held by institutional investors. Comparatively, 12.3% of InnovAge shares are held by institutional investors. 0.6% of Teladoc Health shares are held by insiders. Comparatively, 1.0% of InnovAge shares are held by 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.

Profitability

This table compares Teladoc Health and InnovAge’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%
InnovAge	-1.96%	-7.02%	-3.31%

Analyst Recommendations

This is a summary of recent ratings for Teladoc Health and InnovAge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teladoc Health	1	11	5	0	2.24
InnovAge	2	0	0	0	1.00

Teladoc Health presently has a consensus target price of $9.68, suggesting a potential upside of 29.48%. InnovAge has a consensus target price of $5.00, suggesting a potential downside of 2.65%. Given Teladoc Health’s stronger consensus rating and higher probable upside, equities analysts clearly believe Teladoc Health is more favorable than InnovAge.

Valuation & Earnings

This table compares Teladoc Health and InnovAge”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	0.52	-$1.00 billion	($1.28)	-5.84
InnovAge	$853.70 million	0.82	-$30.31 million	($0.13)	-39.51

InnovAge has lower revenue, but higher earnings than Teladoc Health. InnovAge is trading at a lower price-to-earnings ratio than Teladoc Health, indicating that it is currently the more affordable of 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 InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.