Financial Comparison: Teladoc (TDOC) vs. Envision Healthcare (EVHC)

Teladoc (NYSE: TDOC) and Envision Healthcare (NYSE:EVHC) are both mid-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Valuation and Earnings

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This table compares Teladoc and Envision Healthcare’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teladoc $233.28 million 12.95 -$106.78 million ($1.65) -29.36
Envision Healthcare $12.18 billion 0.42 -$228.00 million $2.48 17.15

Teladoc has higher earnings, but lower revenue than Envision Healthcare. Teladoc is trading at a lower price-to-earnings ratio than Envision Healthcare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Teladoc and Envision Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teladoc -41.06% -20.40% -12.48%
Envision Healthcare 1.41% 4.59% 1.97%

Volatility & Risk

Teladoc has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Envision Healthcare has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Teladoc and Envision Healthcare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teladoc 0 4 12 0 2.75
Envision Healthcare 0 6 8 0 2.57

Teladoc currently has a consensus price target of $43.00, suggesting a potential downside of 11.25%. Envision Healthcare has a consensus price target of $40.75, suggesting a potential downside of 4.21%. Given Envision Healthcare’s higher possible upside, analysts plainly believe Envision Healthcare is more favorable than Teladoc.

Summary

Envision Healthcare beats Teladoc on 8 of the 12 factors compared between the two stocks.

Teladoc Company Profile

Teladoc, Inc. provides telehealth services worldwide. It offers a portfolio of services and solutions covering 450 medical subspecialties, such as flu and upper respiratory infections, cancer, and congestive heart failure. The company provides its services through mobile devices, the Internet, video, and phone. It serves employers of Fortune 1000 companies, health plans, health systems, and other entities. Teladoc, Inc. was founded in 2002 and is headquartered in Purchase, New York.

Envision Healthcare Company Profile

Envision Healthcare Corporation, through its subsidiaries, provides various healthcare services in the United States. The company operates through two segments, Physician Services and Ambulatory Services. As of December 31, 2017, its physician-led services encompassed providers at approximately 1,800 clinical departments at healthcare facilities in 45 states and the District of Columbia that include emergency department and hospitalist, anesthesiology, radiology/tele-radiology, and children's services. The company also offers ambulatory surgical centers (ASCs) services that provide surgical procedures across multiple specialties, including gastroenterology, ophthalmology, orthopedics, and others. It operated 264 ASCs in 35 states and the District of Columbia. In addition, it provides surgery services, such as management, oversight, and surgeon staffing for trauma surgery services; offers direct patient care and care coordination by clinicians outside the acute care setting through physician-led post-acute care services; and operates office-based medical practices that primarily focus on women's health, as well as provides physician staffing and related management services. Further, it offers medical transportation services in 41 states and the District of Columbia. The company offers its clinical solutions for health systems, payors, providers, and patients. Envision Healthcare Corporation was founded in 1992 and is based in Nashville, Tennessee.