Waystar (NASDAQ:WAY – Get Free Report) and Teladoc Health (NYSE:TDOC – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Waystar and Teladoc Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waystar | 11.18% | 7.03% | 4.75% |
| Teladoc Health | -7.13% | -12.15% | -5.83% |
Risk and Volatility
Waystar has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waystar | 0 | 4 | 18 | 2 | 2.92 |
| Teladoc Health | 1 | 10 | 5 | 0 | 2.25 |
Waystar presently has a consensus target price of $34.67, suggesting a potential upside of 35.10%. Teladoc Health has a consensus target price of $7.54, suggesting a potential upside of 19.31%. Given Waystar’s stronger consensus rating and higher possible upside, equities analysts plainly believe Waystar is more favorable than Teladoc Health.
Earnings and Valuation
This table compares Waystar 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 | |
| Waystar | $1.10 billion | 4.48 | $112.09 million | $0.70 | 36.66 |
| Teladoc Health | $2.53 billion | 0.45 | -$200.32 million | ($0.99) | -6.38 |
Waystar has higher earnings, but lower revenue than Teladoc Health. Teladoc Health is trading at a lower price-to-earnings ratio than Waystar, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
76.8% of Teladoc Health shares are held by institutional investors. 3.5% of Waystar shares are held by insiders. Comparatively, 0.7% of Teladoc Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Waystar beats Teladoc Health on 12 of the 15 factors compared between the two stocks.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based 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.
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