Analyzing Progyny (NASDAQ:PGNY) & Teladoc Health (NYSE:TDOC)

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

Volatility & Risk

Progyny has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progyny	$1.17 billion	1.43	$54.34 million	$0.59	32.90
Teladoc Health	$2.57 billion	0.60	-$1.00 billion	($1.19)	-7.28

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

Institutional & Insider Ownership

94.9% of Progyny shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 9.4% of Progyny shares are owned by company insiders. Comparatively, 0.6% of Teladoc Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Progyny and Teladoc Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progyny	0	4	5	1	2.70
Teladoc Health	1	11	6	1	2.37

Progyny currently has a consensus target price of $25.44, indicating a potential upside of 31.09%. Teladoc Health has a consensus target price of $9.97, indicating a potential upside of 15.14%. Given Progyny’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Progyny is more favorable than Teladoc Health.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Progyny	4.28%	10.69%	7.12%
Teladoc Health	-8.16%	-10.13%	-4.43%

Summary

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

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.

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.