Teladoc Health (NYSE:TDOC) versus Establishment Labs (NASDAQ:ESTA) Head-To-Head Review

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

Valuation & Earnings

This table compares Establishment Labs and Teladoc Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Establishment Labs	$211.08 million	9.17	-$51.06 million	($1.49)	-44.13
Teladoc Health	$2.53 billion	0.45	-$200.32 million	($0.97)	-6.56

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

Volatility and Risk

Establishment Labs has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Establishment Labs and Teladoc Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Establishment Labs	1	1	6	0	2.63
Teladoc Health	1	12	5	0	2.22

Establishment Labs currently has a consensus target price of $87.14, suggesting a potential upside of 32.52%. Teladoc Health has a consensus target price of $7.53, suggesting a potential upside of 18.32%. Given Establishment Labs’ stronger consensus rating and higher possible upside, research analysts clearly believe Establishment Labs is more favorable than Teladoc Health.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Establishment Labs	-19.05%	-218.77%	-12.31%
Teladoc Health	-6.81%	-11.45%	-5.54%

Insider and Institutional Ownership

72.9% of Establishment Labs shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 10.0% of Establishment Labs 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Teladoc Health beats Establishment Labs on 8 of the 14 factors compared between the two stocks.

About Establishment Labs

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.

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.