InnovAge (NASDAQ:INNV – Get Free Report) and Talkspace (NASDAQ:TALK – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Volatility and Risk
InnovAge has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
This table compares InnovAge and Talkspace’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
InnovAge currently has a consensus price target of $8.00, indicating a potential upside of 13.48%. Talkspace has a consensus price target of $1.00, indicating a potential downside of 43.18%. Given InnovAge’s higher possible upside, equities analysts plainly believe InnovAge is more favorable than Talkspace.
Earnings & Valuation
This table compares InnovAge and Talkspace’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|InnovAge||$688.09 million||1.39||-$40.67 million||($0.31)||-22.74|
|Talkspace||$119.57 million||2.45||-$79.67 million||($0.30)||-5.87|
InnovAge has higher revenue and earnings than Talkspace. InnovAge is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
12.2% of InnovAge shares are owned by institutional investors. Comparatively, 46.4% of Talkspace shares are owned by institutional investors. 0.3% of InnovAge shares are owned by company insiders. Comparatively, 18.4% of Talkspace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
InnovAge beats Talkspace on 6 of the 11 factors compared between the two stocks.
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities. It manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. The company offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. As of June 30, 2022, it served approximately 6,650 PACE participants in the United States; and operates 18 PACE centers in Colorado, California, New Mexico, Pennsylvania, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
Talkspace, Inc. operates as a virtual behavioral healthcare company. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans through both business-to-business and business-to-consumer channels. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace for Business for employees to access its platform services on a benefit plan paid by the employer; and Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan, that provides online therapy to employees through EAP and behavioral health benefits. Talkspace, Inc. was founded in 2012 and is based in New York, New York.
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