Teladoc, Inc. (NYSE:TDOC) and Evolent Health, Inc. (NYSE:EVH) are both Technology companies that recently hit new low. Naturally, this has created a bit of a stir amongst investors. We will compare the two companies across various metrics including growth, profitability, risk, return, dividends, and valuation to determine if one is a better choice than the other.
Teladoc, Inc. (NYSE:TDOC) operates in the Healthcare Information Services segment of the Technology sector. TDOC has a net profit margin of -47.80% and is less profitable than the average company in the Healthcare Information Services industry. In terms of efficiency, TDOC has an asset turnover ratio of 0.37. This figure represents the amount of revenue a company generates per dollar of assets. TDOC’s financial leverage ratio is 0.66, which indicates that the company’s asset base is primarily funded by equity capital. Company’s return on equity, which is really just the product of the company’s profit margin, asset turnover, and financial leverage ratios, is -24.70%, which is worse than the Healthcare Information Services industry average ROE.
Stock’s free cash flow yield, which represents the amount of cash available to investors before dividends, expressed as a percentage of the stock price, is -0.2. The average investment recommendation for TDOC, taken from a group of Wall Street Analysts, is 1.90, or a buy.
Over the past three months, Teladoc, Inc. insiders have been net buyers, dumping a net of -138,258 shares. This implies that insiders have been feeling relatively bearish about the outlook for TDOC. Evolent Health, Inc. (NYSE:EVH) operates in the Healthcare Information Services segment of the Technology sector. EVH’s asset turnover ratio is 0.67 and the company has financial leverage of 0.31. EVH’s return on equity of -8.80% is worse than the Healthcare Information Services industry average.
The average analyst recommendation for EVH is 1.50, or a buy.
Evolent Health, Inc. insiders have sold a net of -56,156 shares during the past three months, which implies that the company’s top executives have been feeling bearish about the stock’s outlook.
Teladoc, Inc. (NYSE:EVH) scores higher than Evolent Health, Inc. (NYSE:TDOC) on 6 of the 13 measures compared between the two companies. EVH has the better fundamentals, scoring higher on profitability, efficiency, leverage and return metrics. EVH has better insider activity and sentiment signals.