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 2.29%) and Zoom (ZM 1.95%).
In the video, we go in depth on all the metrics, but here is a quick rundown of my point system and the winner.
- Future revenue growth winner: Teladoc. Analysts expect more growth from the healthcare company.
- Historical revenue growth winner: Zoom. The tech company has been a revenue beast in the past three years.
- Profit/gross margin growth winner: Zoom. Both companies have seen significant improvement and growth here, but Zoom comes out on top.
- 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.
- Balance sheet winner: Zoom. Both have a strong balance sheet, but Zoom has a better one with more cash and less debt ratio.
- 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.
- 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.
