Talkspace (NASDAQ:TALK – Get Free Report) and InnovAge (NASDAQ:INNV – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
Talkspace has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
Valuation and Earnings
This table compares Talkspace and InnovAge’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talkspace | $128.55 million | 2.06 | -$79.67 million | ($0.30) | -5.30 |
| InnovAge | $684.07 million | 1.28 | -$6.52 million | ($0.31) | -20.74 |
Analyst Recommendations
This is a summary of recent ratings and price targets for Talkspace and InnovAge, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talkspace | 0 | 1 | 0 | 0 | 2.00 |
| InnovAge | 0 | 0 | 0 | 0 | N/A |
Talkspace presently has a consensus price target of $1.00, indicating a potential downside of 37.11%. Given Talkspace’s higher possible upside, research analysts clearly believe Talkspace is more favorable than InnovAge.
Profitability
This table compares Talkspace and InnovAge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talkspace | -38.70% | -35.11% | -29.10% |
| InnovAge | -6.17% | -13.04% | -7.48% |
Institutional & Insider Ownership
46.4% of Talkspace shares are owned by institutional investors. Comparatively, 12.2% of InnovAge shares are owned by institutional investors. 42.0% of Talkspace shares are owned by insiders. Comparatively, 0.3% of InnovAge shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Talkspace beats InnovAge on 7 of the 12 factors compared between the two stocks.
About Talkspace
Talkspace, Inc. operates as a virtual behavioral healthcare company. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans through both business-to-business and business-to-consumer channels. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace for Business for employees to access its platform services on a benefit plan paid by the employer; and Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan, that provides online therapy to employees through EAP and behavioral health benefits. Talkspace, Inc. was founded in 2012 and is based in New York, New York.
About InnovAge
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities. It manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. The company offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. As of June 30, 2022, it served approximately 6,650 PACE participants in the United States; and operates 18 PACE centers in Colorado, California, New Mexico, Pennsylvania, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
Receive News & Ratings for Talkspace Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Talkspace and related companies with MarketBeat.com's FREE daily email newsletter.
