Analyzing Talkspace (NASDAQ:TALK) and Precipio (NASDAQ:PRPO)

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

Profitability

This table compares Talkspace and Precipio’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%
Precipio	-1.51%	-2.78%	-1.84%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Talkspace and Precipio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talkspace	0	8	1	0	2.11
Precipio	1	0	0	0	1.00

Talkspace currently has a consensus price target of $5.56, indicating a potential upside of 7.18%. Given Talkspace’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Talkspace is more favorable than Precipio.

Valuation and Earnings

This table compares Talkspace and Precipio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talkspace	$228.87 million	3.80	$7.79 million	$0.05	103.80
Precipio	$24.05 million	2.21	-$360,000.00	($0.25)	-119.24

Talkspace has higher revenue and earnings than Precipio. Precipio is trading at a lower price-to-earnings ratio than Talkspace, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

57.4% of Talkspace shares are owned by institutional investors. Comparatively, 10.4% of Precipio shares are owned by institutional investors. 23.5% of Talkspace shares are owned by company insiders. Comparatively, 16.9% of Precipio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Talkspace has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Precipio has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Talkspace beats Precipio on 13 of the 14 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 Precipio

Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.