Teladoc stock or Fresenius stock in particular use telephones and video conference software as well as mobile applications to offer remote medical care on demand like: burn fat, lose weight and build muscles.
Teladoc stock telemedicine price
Multinational telemedicine and virtual health care companies could be among the winners in the health care industry as a result of these developments. The digitization of the healthcare industry and the availability of medical services could be the next opportunity. Primary services include telemedicine, medical reports, AI and analytics, and licensable platform services. Companies such as the US company Teladoc stock or the German CompuGroup are industry leaders here. Teladoc is traded on the NYSE and has a market capitalization of nearly $ 7.9 billion. In 2019, the company was active in 129 countries and served around 27 million members. Compugroup has a market capitalization of almost 3.5 billion euros.
But hospital operators such as Fresenius also want to use digital services such as telemedicine to make them fit for the future. Both companies want to launch services through which patients can be treated around the clock from any location. And can have prescriptions or certificates issued for incapacity for work. “Digital before outpatient before inpatient is the formula,” said Rhön-Klinikum-Chef Stephan Holzinger. In Germany, this could also close the gaps in medical care in rural areas.
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But also Germany’s largest clinic operator Fresenius SE & Co KGaA wants to build a universal digital platform for patients. Fresenius shares announced yesterday that it intends to acquire and merge software developer Digital Health Group Frankfurt (DGG). This was through its subsidiary Curalie. This creates an open platform that accompanies patients with digital help. The DGG uses telemedicine services for general practitioners and specialists, while Curalie develops digital offers for the rehabilitation of orthopedic patients, for example.
Advantage of telemedicine
Telemedicine or eHealth companies in particular use telephone and video conference software as well as mobile applications to offer remote medical care on demand. With the increasing use of telemedical offers due to the spread of the coronavirus, the momentum among companies could continue. Telemedicine stock works extensively with insurance companies and large employers and generate income through an annual or monthly fee per subscriber as well as fees for individual consultations.
Doctors at such telemedicine companies treat non-emergencies such as the flu, pink eyes, infections, sinus diseases, mental health problems, and dermatological diseases, among others. While drugs can be prescribed remotely, doctors usually do not prescribe narcotics, or “lifestyle” products such as Viagra and refer some cases to clinics or emergency rooms. In 2019, Teldadoc stock claimed that the services resolved almost 92% of medical problems after the first “visit”. A huge savings potential for the cash registers.
Holding shares of Fresenius (WKN: 578560) and TelaDoc Health (SIN: A14VPK) any similarities?
Well, at least those who get creative can see overlaps. After all, the operational success of both companies is based on the healthcare sector. We can define that as a common denominator.
However, there could also be other similarities. Both Teladoc Health and Fresenius have at least approaches in the field of telemedicine, that surprises you? Yes, that’s understandable.
So today, let’s take a look at which telemedicine stock is now more attractive. Or how you should judge it.
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Fresenius stock: It will take a while…
Many know the DAX Group, Fresenius as a diversified healthcare provider, and that is unlikely to change anytime soon. With Kabi in the field of drugs and other preparations. With Vamed in the service segment and the listed subsidiary Fresenius Medical Care is a major player in dialysis.
Nevertheless, this year Fresenius took over the DGG (digital health group) and thus possibly dared to venture into the field of telemedicine. We should put one thing into perspective beforehand: In view of sales of 28.0 billion US dollars within the first three quarters, it will be a long time before we notice an effect on the figures. With this takeover, however, Fresenius has secured the option of being able to benefit from this growth market in the long term. Possibly a smart early decision.
The Fresenius share is currently more of a general value play. With a price / earnings ratio of just under 13, a price / sales ratio of 0.6 and an aristocratic dividend yield of just over 3%, the fundamental starting point is pretty attractive. Especially if such early, far-sighted decisions should also lead to moderate growth in the long term.
Fresenius stock is primarily targeting the chronically ill such as diabetics or kidney patients, also it can offer diet plan programs to lose weight.
Said Enrico Jensch, head of operations at the Helios clinics in Germany: “They have the greatest need for regular treatment.”
Specifically, sick people could be referred to specialists, video consultations or to the emergency room via Curalie using an automated question-and-answer catalog. Electronic patient files, online appointments and medical images could also be used digitally via the portal.
Fresenius Helios with 90 clinics and 130 medical care centers in Germany initially wanted to set up a telemedicine provider together with the Canadian start-up Dialogue. But the partners did not come together on some points.
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Teladoc stock: Digital health through & through
Teladoc Health shares, on the other hand, represent the exciting, growing opportunity to benefit from the digital health services market. Behind Teladoc is the original arm that relied on telemedicine in its purest form. However, this is no longer just part of the overall group.
With the takeover of Livongo Health, digital data is increasingly coming to the fore. In the future, (Teladoc Health Group) could possibly become a leading digital health service provider. It has many services to offer and creates an ecosystem as a service provider for doctors, patients and clinics. Probably also health insurance companies. Should this vision become reality, there should still be a lot of potential.
Especially since Teladoc stock now has a market value of just over 28 billion US dollars. At which point it could be comparatively small for this vision. Based on the last quarterly sales of 289.1 million US dollars , the price-to-sales ratio would be around 25.1, which is anything but cheap. At the moment, however, sales growth amounts to 111%. The strong growth and the overall vision could put the ambitious, fundamental starting position into perspective in the long term.
Conservative or high-growth? Your choice!
The shares of Fresenius stock and teladoc stock can both be a way to benefit from telemedicine. Whereby one should definitely not overestimate that with the DAX dividend aristocrat. Nonetheless, this also shows that Fresenius stock is still on the lookout for attractive growth opportunities.
Ultimately, the question of which stock is more attractive is more likely to be a question of risk appetite. Conservative investors can rely on the relatively inexpensive, reliable and stable Fresenius share. Growth investors in the trendy Teladoc Health share. You probably know best yourself what you belong to.