Contrasting Cencora (NYSE:COR) & Teladoc Health (NYSE:TDOC)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cencora	$293.96 billion	0.19	$1.51 billion	$8.62	34.23
Teladoc Health	$2.57 billion	0.57	-$1.00 billion	($5.92)	-1.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cencora	0.55%	344.71%	4.26%
Teladoc Health	-39.66%	-11.01%	-4.66%

Volatility & Risk

Cencora has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cencora and Teladoc Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cencora	0	2	9	0	2.82
Teladoc Health	0	12	7	0	2.37

Cencora presently has a consensus price target of $306.33, indicating a potential upside of 3.82%. Teladoc Health has a consensus price target of $9.65, indicating a potential upside of 15.88%. Given Teladoc Health’s higher possible upside, analysts clearly believe Teladoc Health is more favorable than Cencora.

Institutional and Insider Ownership

97.5% of Cencora shares are held by institutional investors. Comparatively, 76.8% of Teladoc Health shares are held by institutional investors. 10.8% of Cencora shares are held by insiders. Comparatively, 0.6% of Teladoc Health shares are held by 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

Cencora beats Teladoc Health on 11 of the 14 factors compared between the two stocks.

About Cencora

Cencora, Inc. sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers. This segment also distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services to physicians who specialize in various disease states, such as oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. Its International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers, and hospitals primarily in Europe; and provides specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.

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.