Financial Survey: Talkspace (NASDAQ:TALK) & The Pennant Group (NASDAQ:PNTG)

Talkspace (NASDAQ:TALKGet Free Report) and The Pennant Group (NASDAQ:PNTGGet Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Risk & Volatility

Talkspace has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, The Pennant Group has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Talkspace and The Pennant Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Talkspace 0 2 0 0 2.00
The Pennant Group 0 1 3 0 2.75

Talkspace currently has a consensus price target of $3.00, indicating a potential upside of 49.25%. The Pennant Group has a consensus price target of $24.50, indicating a potential downside of 0.28%. Given Talkspace’s higher possible upside, analysts clearly believe Talkspace is more favorable than The Pennant Group.

Valuation & Earnings

This table compares Talkspace and The Pennant Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Talkspace $162.13 million 2.10 -$19.18 million ($0.08) -25.13
The Pennant Group $575.34 million 1.28 $13.38 million $0.54 45.50

The Pennant Group has higher revenue and earnings than Talkspace. Talkspace is trading at a lower price-to-earnings ratio than The Pennant Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

57.4% of Talkspace shares are owned by institutional investors. Comparatively, 85.9% of The Pennant Group shares are owned by institutional investors. 18.4% of Talkspace shares are owned by insiders. Comparatively, 5.8% of The Pennant Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Talkspace and The Pennant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Talkspace -7.33% -10.00% -8.47%
The Pennant Group 2.86% 13.42% 3.63%

Summary

The Pennant Group beats Talkspace on 11 of the 14 factors compared between the two stocks.

About Talkspace

(Get Free Report)

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.

About The Pennant Group

(Get Free Report)

The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors who are independent or who require some support. The company operates home health, hospice, and home care agencies, as well as senior living communities throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.

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