Talkspace (NASDAQ:TALK) and Clover Health Investments (NASDAQ:CLOV) Head to Head Review

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

Profitability

This table compares Clover Health Investments and Talkspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-2.58%	-16.52%	-9.28%
Talkspace	0.49%	1.03%	0.88%

Analyst Recommendations

This is a summary of recent ratings for Clover Health Investments and Talkspace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	3	1	0	2.00
Talkspace	1	7	1	0	2.00

Clover Health Investments currently has a consensus price target of $2.90, indicating a potential downside of 19.67%. Talkspace has a consensus price target of $5.56, indicating a potential upside of 6.97%. Given Talkspace’s higher probable upside, analysts plainly believe Talkspace is more favorable than Clover Health Investments.

Risk and Volatility

Clover Health Investments has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 57.4% of Talkspace shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by company insiders. Comparatively, 23.5% of Talkspace shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Clover Health Investments and Talkspace”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.92 billion	0.99	-$85.55 million	($0.12)	-30.08
Talkspace	$228.87 million	3.81	$7.79 million	$0.05	104.00

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

Summary

Talkspace beats Clover Health Investments on 9 of the 12 factors compared between the two stocks.

About Clover Health Investments

Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.

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.