CareCloud (NASDAQ:CCLD) and Talkspace (NASDAQ:TALK) Critical Analysis

CareCloud (NASDAQ:CCLD) and Talkspace (NASDAQ:TALK) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

10.2% of CareCloud shares are held by institutional investors. Comparatively, 57.4% of Talkspace shares are held by institutional investors. 14.7% of CareCloud shares are held by insiders. Comparatively, 23.5% of Talkspace shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareCloud	10.08%	23.51%	16.68%
Talkspace	1.41%	2.48%	2.11%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	1	0	2.33
Talkspace	0	2	3	2	3.00

CareCloud currently has a consensus price target of $2.50, suggesting a potential downside of 26.04%. Talkspace has a consensus price target of $4.50, suggesting a potential upside of 63.04%. Given Talkspace’s stronger consensus rating and higher probable upside, analysts plainly believe Talkspace is more favorable than CareCloud.

Risk & Volatility

CareCloud has a beta of 2.14, suggesting that its share price is 114% more volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$111.79 million	1.28	$7.85 million	($0.04)	-84.50
Talkspace	$187.59 million	2.46	$1.15 million	$0.02	138.00

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

Summary

Talkspace beats CareCloud on 10 of the 15 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 Talkspace

Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings; and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. It serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store. Talkspace, Inc. was founded in 2012 and is headquartered in New York, New York.