Investors are closely examining the financial health and growth potential of two small-cap medical companies: Teladoc Health (NYSE: TDOC) and Enhabit (NYSE: EHAB). A recent comparison reveals significant differences in various metrics, including earnings, institutional ownership, and analyst recommendations, which may influence investment decisions.
Profitability and Earnings Overview
When analyzing profitability, both companies exhibit distinct characteristics. Enhabit has reported higher earnings but trails Teladoc Health in terms of revenue. Specifically, while Enhabit posts robust earnings, its revenue figures are lower compared to Teladoc’s comprehensive service offerings. This disparity may reflect the different operational focuses of the companies, impacting their overall financial attractiveness.
Additionally, Enhabit is currently trading at a lower price-to-earnings ratio than Teladoc Health. This suggests that Enhabit may be a more affordable investment at this time, potentially appealing to value-oriented investors.
Risk and Market Volatility
The risk profile of each company also merits consideration. Enhabit possesses a beta of 1.69, indicating its share price is approximately 69% more volatile than that of the S&P 500 index. In contrast, Teladoc Health shows a higher beta of 1.92, meaning its stock could be 92% more volatile than the broader market. Investors must weigh this volatility against potential rewards, especially in a rapidly evolving healthcare landscape.
Institutional and Insider Ownership
Institutional ownership can provide insights into investor confidence in a company. Currently, 76.8% of Teladoc Health shares are held by institutional investors, suggesting strong belief in its long-term potential. By comparison, institutional ownership for Enhabit is substantially lower, at just 3.4%. Furthermore, only 0.6% of Teladoc’s shares are owned by company insiders, indicating a significant disparity in insider investment between the two firms.
Analyst Recommendations and Market Outlook
Analysts have offered diverging perspectives on these companies. According to MarketBeat, Enhabit has a consensus target price of $9.00, indicating a modest potential upside of 0.39%. In contrast, Teladoc Health boasts a higher target price of $9.68, reflecting a potentially more attractive upside of 27.58%. This stronger consensus rating suggests greater optimism about Teladoc’s prospects moving forward.
In summary, Teladoc Health outperformed Enhabit in 8 out of the 14 factors examined. Investors looking for growth opportunities may find Teladoc’s higher institutional backing and analyst support compelling.
Company Profiles
Enhabit, Inc., based in Dallas, Texas, provides home health and hospice services across the United States. Its offerings include patient education, chronic disease management, and hospice care services tailored to meet individual patient needs. The company was established in 1998 and underwent a name change from Encompass Health Home Health Holdings, Inc. in March 2022.
Conversely, Teladoc Health, Inc., headquartered in Purchase, New York, specializes in virtual healthcare services worldwide. Its operations are divided into two segments: Integrated Care, which encompasses general and specialty medical services, and BetterHelp, a mental health platform providing online counseling. Founded in 2002 and rebranded in August 2018, Teladoc has grown to serve a diverse clientele, including employers, hospitals, and individual patients.
Investors and analysts alike will continue to monitor these two companies as they navigate the complex healthcare landscape, seeking to identify the most promising opportunities for growth and stability.
