Critical Review: CareCloud (NASDAQ:CCLD) versus Teladoc Health (NYSE:TDOC)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for CareCloud and Teladoc Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	1	0	2.33
Teladoc Health	1	10	5	0	2.25

CareCloud currently has a consensus target price of $3.25, suggesting a potential upside of 55.50%. Teladoc Health has a consensus target price of $7.54, suggesting a potential upside of 15.79%. Given CareCloud’s stronger consensus rating and higher probable upside, analysts plainly believe CareCloud is more favorable than Teladoc Health.

Earnings and Valuation

This table compares CareCloud and Teladoc Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$120.50 million	0.74	$10.80 million	$0.07	29.86
Teladoc Health	$2.49 billion	0.47	-$200.32 million	($0.99)	-6.57

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

Insider and Institutional Ownership

10.2% of CareCloud shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 14.8% of CareCloud shares are owned by insiders. Comparatively, 0.7% of Teladoc Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

CareCloud has a beta of 1.5, indicating that its stock price is 50% more 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareCloud	6.21%	27.07%	14.56%
Teladoc Health	-7.13%	-12.15%	-5.83%

Summary

CareCloud beats Teladoc Health on 10 of the 14 factors compared between the two stocks.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

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.