TDCX (NYSE:TDCX) & Healthcare Triangle (NASDAQ:HCTI) Financial Analysis

Healthcare Triangle (NASDAQ:HCTI) and TDCX (NYSE:TDCX) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Healthcare Triangle and TDCX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Triangle	-37.16%	-205.49%	-83.03%
TDCX	18.24%	18.91%	15.99%

Insider & Institutional Ownership

0.3% of Healthcare Triangle shares are owned by institutional investors. Comparatively, 11.0% of TDCX shares are owned by institutional investors. 2.5% of Healthcare Triangle shares are owned by insiders. Comparatively, 85.0% of TDCX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Healthcare Triangle and TDCX’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Triangle	$33.20 million	0.19	-$12.34 million	($2.94)	-0.46
TDCX	$499.28 million	2.07	$91.08 million	$0.62	11.49

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

Analyst Recommendations

This is a summary of current ratings and target prices for Healthcare Triangle and TDCX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Triangle	0	0	0	0	N/A
TDCX	0	1	2	0	2.67

TDCX has a consensus target price of $8.60, indicating a potential upside of 20.70%. Given TDCX’s higher probable upside, analysts clearly believe TDCX is more favorable than Healthcare Triangle.

Risk and Volatility

Healthcare Triangle has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, TDCX has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Summary

TDCX beats Healthcare Triangle on 11 of the 12 factors compared between the two stocks.

About Healthcare Triangle

Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company's software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. operates as a subsidiary of SecureKloud Technologies, Inc.

About TDCX

TDCX Inc., together with its subsidiaries, provides outsource contact center services for technology and other blue-chip companies in Singapore, Malaysia, Thailand, the Philippines, Japan, China, Spain, India, Colombia, South Korea, and Romania. It offers digital customer experience solutions, including after-sales service and customer support across various industry verticals, such as travel and hospitality, digital advertising and media, fast-moving consumer goods, technology, financial services, fintech, government and non-governmental organizations, gaming, e-commerce, and education. The company also provides sales and digital marketing services that help its clients to market their products and services to their potential customers in the business-to-consumer and business-to-business markets; and content monitoring and moderation services that create a safe and secure online environment for social media platforms by providing human interaction to content moderation services. In addition, it offers workspaces to its existing clients; and human resource and administration services. Further, the company provides omnichannel CX solutions, such as end-user support and troubleshooting for software and consumer electronic devices. The company was formerly known as TDCX Capital Pte Ltd and changed its name to TDCX Inc. in January 2021. TDCX Inc. was founded in 1995 and is headquartered in Singapore. TDCX Inc. operates as a subsidiary of Transformative Investments Pte Ltd.