Analyzing Talkspace (NASDAQ:TALK) and Rennova Health (OTCMKTS:RNVA)

Talkspace (NASDAQ:TALK) and Rennova Health (OTCMKTS:RNVA) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talkspace	3.40%	6.89%	5.87%
Rennova Health	N/A	N/A	N/A

Institutional & Insider Ownership

57.4% of Talkspace shares are owned by institutional investors. 23.5% of Talkspace shares are owned by insiders. Comparatively, 55.5% of Rennova Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talkspace	$228.87 million	3.78	$7.79 million	$0.05	103.60
Rennova Health	$18.69 million	0.00	-$7.73 million	N/A	N/A

Talkspace has higher revenue and earnings than Rennova Health.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Talkspace and Rennova Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talkspace	0	8	1	0	2.11
Rennova Health	0	0	0	0	0.00

Talkspace currently has a consensus price target of $5.56, suggesting a potential upside of 7.38%. Given Talkspace’s stronger consensus rating and higher probable upside, analysts plainly believe Talkspace is more favorable than Rennova Health.

Volatility & Risk

Talkspace has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Rennova Health has a beta of 23.78, indicating that its share price is 2,278% more volatile than the S&P 500.

Summary

Talkspace beats Rennova Health on 9 of the 11 factors compared between the two stocks.

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.

About Rennova Health

Rennova Health, Inc., together with its subsidiaries, provides health care services in the United States. It owns one operating hospital in Oneida, Tennessee; and a rural clinic in Williamsburg, Kentucky. The company is based in West Palm Beach, Florida.