Labcorp (NYSE:LH – Get Free Report) and Teladoc Health (NYSE:TDOC – Get Free Report) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Labcorp and Teladoc Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Labcorp | 6.66% | 16.29% | 7.62% |
| Teladoc Health | -6.81% | -11.32% | -5.51% |
Risk and Volatility
Labcorp has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Labcorp | $14.14 billion | 1.49 | $876.50 million | $10.46 | 24.51 |
| Teladoc Health | $2.51 billion | 0.46 | -$200.32 million | ($0.97) | -6.66 |
Labcorp has higher revenue and earnings than Teladoc Health. Teladoc Health is trading at a lower price-to-earnings ratio than Labcorp, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.9% of Labcorp shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 0.8% of Labcorp shares are owned by company insiders. Comparatively, 0.7% of Teladoc Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Labcorp and Teladoc Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Labcorp | 0 | 3 | 8 | 0 | 2.73 |
| Teladoc Health | 1 | 12 | 5 | 0 | 2.22 |
Labcorp presently has a consensus target price of $308.00, indicating a potential upside of 20.14%. Teladoc Health has a consensus target price of $7.47, indicating a potential upside of 15.53%. Given Labcorp’s stronger consensus rating and higher possible upside, analysts plainly believe Labcorp is more favorable than Teladoc Health.
Summary
Labcorp beats Teladoc Health on 13 of the 14 factors compared between the two stocks.
About Labcorp
Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.
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.
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