Critical Contrast: Teladoc Health (NYSE:TDOC) versus Medpace (NASDAQ:MEDP)

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

Volatility and Risk

Teladoc Health has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, Medpace has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Earnings & Valuation

This table compares Teladoc Health and Medpace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teladoc Health	$2.57 billion	0.38	-$1.00 billion	($1.28)	-4.27
Medpace	$2.11 billion	7.78	$404.39 million	$14.30	40.73

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

Profitability

This table compares Teladoc Health and Medpace’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%
Medpace	18.36%	91.88%	23.65%

Institutional & Insider Ownership

76.8% of Teladoc Health shares are held by institutional investors. Comparatively, 78.0% of Medpace shares are held by institutional investors. 0.6% of Teladoc Health shares are held by company insiders. Comparatively, 20.3% of Medpace shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Teladoc Health and Medpace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teladoc Health	1	12	3	0	2.13
Medpace	3	10	2	0	1.93

Teladoc Health presently has a consensus price target of $9.12, suggesting a potential upside of 66.95%. Medpace has a consensus price target of $491.27, suggesting a potential downside of 15.66%. Given Teladoc Health’s stronger consensus rating and higher probable upside, analysts plainly believe Teladoc Health is more favorable than Medpace.

Summary

Medpace beats Teladoc Health on 9 of the 14 factors compared between 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 Medpace

Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.