Talkspace (NASDAQ:TALK – Get Free Report) and Covalon Technologies (OTCMKTS:CVALF – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Earnings and Valuation
This table compares Talkspace and Covalon Technologies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talkspace | $150.04 million | 3.70 | -$19.18 million | ($0.01) | -330.00 |
| Covalon Technologies | $19.72 million | 3.61 | -$3.31 million | ($0.03) | -86.64 |
Covalon Technologies has lower revenue, but higher earnings than Talkspace. Talkspace is trading at a lower price-to-earnings ratio than Covalon Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talkspace | 0 | 2 | 0 | 0 | 2.00 |
| Covalon Technologies | 0 | 0 | 0 | 0 | 0.00 |
Talkspace currently has a consensus price target of $3.00, suggesting a potential downside of 9.09%. Given Talkspace’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Talkspace is more favorable than Covalon Technologies.
Risk and Volatility
Talkspace has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Covalon Technologies has a beta of -0.34, suggesting that its stock price is 134% less volatile than the S&P 500.
Profitability
This table compares Talkspace and Covalon Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talkspace | -0.76% | -1.17% | -0.99% |
| Covalon Technologies | -2.94% | -4.40% | -3.54% |
Institutional and Insider Ownership
57.4% of Talkspace shares are held by institutional investors. 21.7% of Talkspace shares are held by company 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.
Summary
Talkspace beats Covalon Technologies on 11 of the 13 factors compared between the two stocks.
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.
About Covalon Technologies
Covalon Technologies Ltd. engages in the research, development, manufacturing, and marketing of medical products in infection management, advanced wound care, and surgical procedure areas in the United States, Canada, the Middle East, Asia, Latin America, and internationally. The company’s platform technologies comprise collagen matrix platform that is used to manufacture a family of products to treat chronic and infected wounds, including diabetic ulcers, pressure ulcers, venous ulcers, donor and graft sites, traumatic wounds healing by secondary intention, dehisced surgical wounds, and first and second degree burns; and antimicrobial silicone adhesive platform, which is used for family of pre and post-surgical, and vascular access products that are designed to kill bacteria or yeast that comes into contact with the antimicrobial silicone providing broad-spectrum antimicrobial activity. It also offers medical coating platform, a process that utilizes photo-polymerization to create active grafting sites where new polymer chains are initiated and propagated from the surface of an existing medical device. In addition, the company provides wound care dressings; surgical and peri-operative; and infection management products. It offers its products under the Covalon brand name through third-party distribution networks and company’s direct sales force. The company serves hospitals, wound care centers, burn centers, extended/alternate care and acute care facilities, home health care agencies, and physicians’ offices. Covalon Technologies Ltd. is headquartered in Mississauga, Canada.
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