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Which Is a Better Buy Right Now? Teladoc vs. Zoom

By Jose Najarro - Updated Mar 17, 2021 at 3:00PM

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Which pandemic stock will rally higher?

In this video, I will see which is a better buy between two popular growth stocks that many investors believe are on sale right now. The two competitors are Teladoc (TDOC 6.94%) and Zoom (ZM 3.20%).

In the video, we go in depth on all the metrics, but here is a quick rundown of my point system and the winner.

  1. Future revenue growth winner: Teladoc. Analysts expect more growth from the healthcare company.
  2. Historical revenue growth winner: Zoom. The tech company has been a revenue beast in the past three years.
  3. Profit/gross margin growth winner: Zoom. Both companies have seen significant improvement and growth here, but Zoom comes out on top.
  4. Operating cash flow margin winner: Zoom. Like the previous point, both companies have seen significant improvement and growth here, but Zoom is just swimming in cash.
  5. Balance sheet winner: Zoom. Both have a strong balance sheet, but Zoom has a better one with more cash and less debt ratio.
  6. Price-to-sales valuation winner: Teladoc. The company came out way cheaper when looking at P/S valuation but based on the previous points, this was expected.
  7. I am more bullish on: Teladoc. In the long term, I am more bullish in the telemedicine world.

The win goes to Zoom. This is just a growth machine, but Teladoc was not far behind. The final score was 4 points for Zoom and 3 points for Teladoc.

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Stocks Mentioned

Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
TDOC
$35.77 (6.94%) $2.32
Zoom Video Communications Stock Quote
Zoom Video Communications
ZM
$110.42 (3.20%) $3.42

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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