Critical Review: BrightSpring Health Services (NASDAQ:BTSG) & Teladoc Health (NYSE:TDOC)

BrightSpring Health Services (NASDAQ:BTSGGet Free Report) and Teladoc Health (NYSE:TDOCGet Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Insider & Institutional Ownership

76.8% of Teladoc Health shares are owned by institutional investors. 2.8% of BrightSpring Health Services shares are owned by company insiders. Comparatively, 0.7% of Teladoc Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BrightSpring Health Services and Teladoc Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BrightSpring Health Services 0 0 16 2 3.11
Teladoc Health 1 11 5 0 2.24

BrightSpring Health Services currently has a consensus price target of $61.27, indicating a potential downside of 11.18%. Teladoc Health has a consensus price target of $7.43, indicating a potential downside of 14.58%. Given BrightSpring Health Services’ stronger consensus rating and higher possible upside, research analysts clearly believe BrightSpring Health Services is more favorable than Teladoc Health.

Profitability

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

Net Margins Return on Equity Return on Assets
BrightSpring Health Services 2.27% 14.63% 4.41%
Teladoc Health -6.81% -11.45% -5.54%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BrightSpring Health Services $12.91 billion 1.05 $190.67 million $1.41 48.92
Teladoc Health $2.53 billion 0.62 -$200.32 million ($0.97) -8.97

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

Risk and Volatility

BrightSpring Health Services has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500.

Summary

BrightSpring Health Services beats Teladoc Health on 13 of the 15 factors compared between the two stocks.

About BrightSpring Health Services

(Get Free Report)

BrightSpring Health Services, Inc. operates a home and community-based healthcare services platform in the United States. The company's platform focuses on delivering pharmacy and provider services, including clinical and supportive care in home and community settings to Medicare, Medicaid, and insured populations. It serves patients through clinical providers and pharmacists. The company was formerly known as Phoenix Parent Holdings Inc. and changed its name to BrightSpring Health Services, Inc. in May 2021. BrightSpring Health Services, Inc. was founded in 1974 and is headquartered in Louisville, Kentucky.

About Teladoc Health

(Get Free Report)

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.

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