WallStSmart

HealthEquity Inc (HQY)vsTalkspace Inc (TALK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HealthEquity Inc generates 474% more annual revenue ($1.31B vs $228.87M). HQY leads profitability with a 16.4% profit margin vs 3.4%. HQY trades at a lower P/E of 33.4x. HQY earns a higher WallStSmart Score of 68/100 (B-).

HQY

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 7.0Value: 10.0Quality: 6.5
Piotroski: 4/9

TALK

Hold

45

out of 100

Grade: D

Growth: 7.3Profit: 4.5Value: 3.0Quality: 7.8
Piotroski: 4/9Altman Z: 3.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HQYUndervalued (+33.2%)

Margin of Safety

+33.2%

Fair Value

$115.13

Current Price

$82.47

$32.66 discount

UndervaluedFair: $115.13Overvalued
TALKSignificantly Overvalued (-102.1%)

Margin of Safety

-102.1%

Fair Value

$1.87

Current Price

$5.13

$3.26 premium

UndervaluedFair: $1.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HQY3 strengths · Avg: 8.7/10
EPS GrowthGrowth
92.4%10/10

Earnings expanding 92.4% YoY

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

TALK2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.9510/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
29.3%8/10

Revenue surging 29.3% year-over-year

Areas to Watch

HQY1 concerns · Avg: 4.0/10
P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

TALK4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.8%4/10

1.8% earnings growth

Market CapQuality
$857.10M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : HQY

The strongest argument for HQY centers on EPS Growth, PEG Ratio, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.6%. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bull Case : TALK

The strongest argument for TALK centers on Altman Z-Score, Revenue Growth. Revenue growth of 29.3% demonstrates continued momentum.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio.

Bear Case : TALK

The primary concerns for TALK are EPS Growth, Market Cap, Return on Equity. A P/E of 128.3x leaves little room for execution misses. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

HQY profiles as a mature stock while TALK is a growth play — different risk/reward profiles.

TALK carries more volatility with a beta of 1.21 — expect wider price swings.

TALK is growing revenue faster at 29.3% — sustainability is the question.

HQY generates stronger free cash flow (102M), providing more financial flexibility.

Bottom Line

HQY scores higher overall (68/100 vs 45/100), backed by strong 16.4% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

HealthEquity Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.

Talkspace Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Talkspace Inc. is a virtual behavioral healthcare company. The company is headquartered in New York, New York.

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