Back to top

Image: Bigstock

TDOC vs. LFMD: Which Telehealth Stock Is Better for Your Portfolio?

Read MoreHide Full Article

Key Takeaways

  • TDOC is expanding integrated care with its Prism platform, global reach and advanced tech focus.
  • TDOC maintains strong liquidity but remains unprofitable as shares fall 22.5% year to date.
  • LFMD targets growth in women's, behavioral and weight management care while advancing a unified platform.

Telemedicine is revolutionizing healthcare access, supported by regulatory measures, such as the 1135 waiver and the Coronavirus Preparedness Act, which expanded Medicare coverage for telehealth visits across offices, hospitals, and patients’ homes. This growing demand for remote medical services continues to accelerate the adoption of telehealth solutions, directly benefiting industry players.

Against this backdrop, Teladoc Health (TDOC - Free Report) and LifeMD (LFMD - Free Report) — two telehealth market players — are expected to maintain their strength.
But for long-term investors, which stock offers the more compelling opportunity? Let’s take a closer look at both companies' fundamentals.

The Case for TDOC

Teladoc is steadily reinforcing its leadership position in integrated care across the United States by broadening its service suite, enhancing care coordination and consistently improving patient and client outcomes. A major strategic priority is the Prism care delivery platform, built to elevate clinical intervention for rising-risk and high-risk populations. Prism’s development is progressing well, with pilot programs expected to launch in 2026 — an indicator of Teladoc’s solid pipeline and future growth potential.

The company’s acquisition-led strategy has played a central role in expanding its distribution capabilities, deepening its clinical offerings and extending its global reach. Teladoc continues to target scalable, high-growth solutions, including technologies, clinical programs, specialty capabilities and distribution assets, to accelerate innovation and broaden its market presence.

International operations have also become increasingly important as competition intensifies in the U.S. market. With a comprehensive platform and an extensive global care network, Teladoc is well-positioned to expand its footprint across Europe, South America and Asia, benefiting from growing demand for virtual healthcare worldwide.

Technologically, Teladoc leverages advanced tools, such as artificial intelligence, machine learning and a robust clinical infrastructure to deliver seamless care across hundreds of medical subspecialties. This technological depth strengthens its competitive advantage in digital health.

The company maintains a solid liquidity position, with $726 million in cash and cash equivalents and free cash flow of $113 million. However, Teladoc continues to operate at a loss and carries a substantial accumulated deficit — largely the result of long-term investments in client acquisition, the development of its proprietary provider network and ongoing enhancements to its technology platform.

TDOC shares have lost 22.5% year to date, underperforming the industry’s growth of 4.3%.

The Case for LFMD

LifeMD is emerging as a leading provider of virtual primary care, supported by a diversified portfolio and accelerating momentum across key growth verticals. Following a return to growth in its RexMD men’s health segment in third-quarter 2025, the company’s weight-management offering has also stabilized, positioning it for meaningful expansion in 2026.

For 2026, LifeMD’s strategy centers on scaling its virtual women’s and behavioral health businesses, accelerating high-quality growth in weight management, further diversifying RexMD, and launching a more integrated LifeMD platform and marketplace. The company aims to build its women’s and behavioral health verticals around synchronous care delivered by highly skilled clinicians, combined with personalized therapeutic programs. Management believes each of these businesses has the potential to reach nine-figure annual revenues within the next three years.

LifeMD’s weight-management platform should benefit from expanding collaborations with Novo Nordisk, Eli Lilly, and other pharmaceutical partners. Since launching its GLP-1 weight-management program in April 2023 and adding a personalized, non–GLP-1-based treatment pathway last September, the company has broadened its addressable market and strengthened patient adherence.

With respect to its men’s brand, RexMD, LifeMD intends to expand and diversify RexMD through personalized compounded medications and hormone therapies to improve patient outcomes and enhance margins. Meanwhile, the unified LifeMD platform and marketplace are expected to drive stronger patient engagement, improve cross-care participation, and provide an elevated experience across both mobile and desktop channels.

LifeMD has also secured regulatory approval for its nonsterile 503-A compounding pharmacy, enabling scalable production of personalized medications with significantly better economics. Combined with the divestiture of its majority stake in WorkSimpli — which strengthened the balance sheet — LifeMD is well-positioned to return to profitability in 2026 as it focuses on becoming a pure-play virtual care and pharmacy leader.

LFMD shares have lost 19.4% year to date, underperforming the industry.

Estimates for TDOC and LFMD

The Zacks Consensus Estimate for TDOC’s 2025 and 2026 bottom line implies a year-over-year improvement of 80.4% and 26.6%, respectively. Loss estimates for both years have narrowed in the past 30 days. 

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for LFMD’s 2025 and 2026 bottom line implies a year-over-year improvement of 71.7% and 346.7%, respectively. Loss estimates for both years witnessed no movement in the past 30 days. 

Zacks Investment Research
Image Source: Zacks Investment Research

Are TDOC and LFMD Shares Expensive?

TDOC shares are trading at a forward 12-month price-to-sales multiple of 0.49, below its median of 1.49 over the last five years. LFMD’s forward 12-month price-to-sales multiple of 0.65 is below its median of 1.02 over the last five years.

Zacks Investment Research
Image Source: Zacks Investment Research

Conclusion

Teladoc is a top player in the telehealth market and is consistently growing revenues and memberships. Its VGM Score of B instills confidence. Yet, its inability to achieve profits this year and probably the next is a concern. 

On the other hand, LifeMD offers a compelling growth opportunity in virtual care, supported by improving profitability, robust unit economics, and a compelling set of long-term growth catalysts. It has a VGM Score of A. 
 
Though these stocks carry a Zacks Rank #3 (Hold) each, LFMD has an edge over TDOC. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Teladoc Health, Inc. (TDOC) - free report >>

LifeMD, Inc. (LFMD) - free report >>

Published in