Analyzing InnovAge (NASDAQ:INNV) and Teladoc Health (NYSE:TDOC)

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

Valuation and Earnings

This table compares InnovAge and Teladoc Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$853.70 million	0.82	-$30.31 million	($0.13)	-39.51
Teladoc Health	$2.57 billion	0.52	-$1.00 billion	($1.28)	-5.84

InnovAge has higher earnings, but lower revenue 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InnovAge	-1.96%	-7.02%	-3.31%
Teladoc Health	-8.84%	-10.59%	-4.77%

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for InnovAge and Teladoc Health, as reported by MarketBeat.com.

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

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

Institutional and Insider Ownership

12.3% of InnovAge shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 1.0% of InnovAge shares are owned by company insiders. Comparatively, 0.6% of Teladoc Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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.

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.