Medpace (NASDAQ:MEDP) and Teladoc Health (NYSE:TDOC) Critical Survey

Medpace (NASDAQ:MEDP) and Teladoc Health (NYSE:TDOC) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medpace	18.36%	91.88%	23.65%
Teladoc Health	-8.84%	-10.59%	-4.77%

Institutional & Insider Ownership

78.0% of Medpace shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 20.3% of Medpace shares are owned by insiders. Comparatively, 0.6% of Teladoc Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Medpace and Teladoc Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medpace	$2.11 billion	7.99	$404.39 million	$14.30	41.81
Teladoc Health	$2.57 billion	0.40	-$1.00 billion	($1.28)	-4.49

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Medpace and Teladoc Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medpace	3	10	2	0	1.93
Teladoc Health	1	12	3	0	2.13

Medpace presently has a consensus target price of $491.27, indicating a potential downside of 17.84%. Teladoc Health has a consensus target price of $9.12, indicating a potential upside of 58.53%. Given Teladoc Health’s stronger consensus rating and higher possible upside, analysts plainly believe Teladoc Health is more favorable than Medpace.

Risk and Volatility

Medpace has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.

Summary

Medpace beats Teladoc Health on 9 of the 14 factors compared between the two stocks.

About Medpace

Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.

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.