Comparing Talkspace (NASDAQ:TALK) and PPJ Enterprise (OTCMKTS:PPJE)

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

Risk & Volatility

PPJ Enterprise has a beta of -0.8, suggesting that its share price is 180% less volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PPJ Enterprise	N/A	N/A	N/A
Talkspace	1.98%	3.75%	3.17%

Analyst Recommendations

This is a summary of recent ratings for PPJ Enterprise and Talkspace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPJ Enterprise	0	0	0	0	0.00
Talkspace	0	3	2	0	2.40

Talkspace has a consensus target price of $4.83, suggesting a potential upside of 37.70%. Given Talkspace’s stronger consensus rating and higher possible upside, analysts clearly believe Talkspace is more favorable than PPJ Enterprise.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPJ Enterprise	$670,000.00	1.33	$10,000.00	N/A	N/A
Talkspace	$187.59 million	3.10	$1.15 million	$0.03	117.00

Talkspace has higher revenue and earnings than PPJ Enterprise.

Summary

Talkspace beats PPJ Enterprise on 12 of the 12 factors compared between the two stocks.

About PPJ Enterprise

PPJ Healthcare Enterprises, Inc., through its subsidiaries, provides automated healthcare reimbursement cycle, online health information digital-systems, and practice information management digital-system software to health care providers and general businesses worldwide. The company offers the Automated Biller, a medical billing system that allows physicians to bill their medical insurance claims at the point of service without data entry, coding, or billing personnel. It also provides billing, specialty medical billing, collection, and workers comp lien collection services for health care providers in the areas of pain management, anesthesia and surgery centers practices, and various specialties of medicine. The company was formerly known as PPJ Enterprise and changed its name to PPJ Healthcare Enterprises, Inc. in October 2014. PPJ Healthcare Enterprises, Inc. was founded in 2000 and is headquartered in Reno, Nevada.

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.