Talkspace (NASDAQ:TALK) versus Clover Health Investments (NASDAQ:CLOV) Head-To-Head Review

Talkspace (NASDAQ:TALK) and Clover Health Investments (NASDAQ:CLOV) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Talkspace and Clover Health Investments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talkspace	1	7	1	0	2.00
Clover Health Investments	1	3	1	0	2.00

Talkspace currently has a consensus target price of $5.56, suggesting a potential upside of 6.36%. Clover Health Investments has a consensus target price of $2.90, suggesting a potential downside of 26.02%. Given Talkspace’s higher possible upside, equities analysts clearly believe Talkspace is more favorable than Clover Health Investments.

Valuation & Earnings

This table compares Talkspace and Clover Health Investments”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talkspace	$228.87 million	3.83	$7.79 million	$0.01	523.00
Clover Health Investments	$2.21 billion	0.93	-$85.55 million	($0.12)	-32.67

Talkspace has higher earnings, but lower revenue than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

57.4% of Talkspace shares are owned by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are owned by institutional investors. 23.5% of Talkspace shares are owned by insiders. Comparatively, 23.5% of Clover Health Investments shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Talkspace and Clover Health Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talkspace	0.49%	1.03%	0.88%
Clover Health Investments	-2.58%	-16.52%	-9.28%

Risk & Volatility

Talkspace has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.44, indicating that its stock price is 144% more volatile than the S&P 500.

Summary

Talkspace beats Clover Health Investments on 9 of the 12 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 Clover Health Investments

Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.