Head to Head Review: Talkspace (NASDAQ:TALK) vs. Zhongchao (NASDAQ:ZCMD)

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

Volatility and Risk

Talkspace has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Zhongchao has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talkspace	0.49%	1.03%	0.88%
Zhongchao	N/A	N/A	N/A

Earnings & Valuation

This table compares Talkspace and Zhongchao”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talkspace	$228.87 million	3.80	$7.79 million	$0.01	519.00
Zhongchao	$11.38 million	0.00	-$6.31 million	N/A	N/A

Talkspace has higher revenue and earnings than Zhongchao.

Institutional and Insider Ownership

57.4% of Talkspace shares are held by institutional investors. Comparatively, 1.7% of Zhongchao shares are held by institutional investors. 23.5% of Talkspace shares are held by company insiders. Comparatively, 28.6% of Zhongchao shares are held 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 current recommendations and price targets for Talkspace and Zhongchao, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talkspace	1	7	1	0	2.00
Zhongchao	1	0	0	0	1.00

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

Summary

Talkspace beats Zhongchao on 11 of the 12 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 Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.