Comparing Talkspace (TALK) and Its Competitors

Talkspace (NASDAQ:TALK) is one of 35 public companies in the “Health services” industry, but how does it compare to its competitors? We will compare Talkspace to related businesses based on the strength of its valuation, dividends, earnings, risk, analyst recommendations, institutional ownership and profitability.

Valuation & Earnings

This table compares Talkspace and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Talkspace	$119.57 million	-$79.67 million	-5.87
Talkspace Competitors	$1.51 billion	-$94.28 million	12.37

Talkspace’s competitors have higher revenue, but lower earnings than Talkspace. Talkspace is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Talkspace has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Talkspace’s competitors have a beta of 1.37, suggesting that their average stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Talkspace and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talkspace	0	1	0	0	2.00
Talkspace Competitors	11	165	321	0	2.62

Talkspace currently has a consensus price target of $1.00, indicating a potential downside of 43.18%. As a group, “Health services” companies have a potential upside of 94.11%. Given Talkspace’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Talkspace has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

46.4% of Talkspace shares are owned by institutional investors. Comparatively, 44.9% of shares of all “Health services” companies are owned by institutional investors. 18.4% of Talkspace shares are owned by company insiders. Comparatively, 21.3% of shares of all “Health services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Talkspace and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talkspace	-38.70%	-35.11%	-29.10%
Talkspace Competitors	-136.74%	-192.16%	-18.53%

Summary

Talkspace competitors beat Talkspace on 8 of the 12 factors compared.

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.