Better Buy: WELL Health Stock or Docebo Stock?

There are a lot of tech stocks that rose unnecessarily high during the last few years. However, all of them came crashing down at the beginning of 2022. That’s despite some of these tech stocks not deserving the drop.

Today, we’re going to look at WELL Health Technologies (TSX:WELL) and Docebo (TSX:DCBO) and see which deserved the dip and which certainly did not.


Docebo rose to immense prominence pretty much thanks to pandemic restrictions. These work-from-home restrictions led to a massive increase in remote work. And what were you supposed to do if you have remote employees who need training?

That’s why Docebo stock rose so fast. The company provides online training tools through an algorithm that can be tailored to your business. It was even used by Amazon during the pandemic and has helped employers expand their employee search on a global scale.

Now this would have been all well and good, but the company needed to continue growing. So, acquisitions, of course, came on the table. And that has continued in the last few years. Most recently, Docebo stock acquired PeerBoard, which will help with the company’s external training offerings.

An important point is that the company continues to beat out earnings estimates quarter after quarter. And while shares are down about 15% in the last year, they’ve climbed 13% year to date. The stock is now quite expensive trading at 178 times earnings and 6.6 times book value as of writing.

WELL Health stock

Another company that saw a rise during the pandemic was WELL Health stock. This came from being a virtual healthcare provider — something in high demand during the pandemic. It also rose from being a tech stock as well. Yet these points both contributed to the company’s eventual fall.

However, just because you think pandemic restrictions will lead back to how people sought healthcare before doesn’t make it true. Virtual healthcare has been immensely popular, as emergency room wait times climb across Canada.

Furthermore, WELL Health stock has expanded beyond Canadian borders. It’s now operating in the United States as well, offering substantial revenue from the U.S. as well as from its Canadian operations.

The company hasn’t slowed down, continuing to make partnerships and acquisitions again and again. And not just in telehealth, but emergency referrals, digital filing, and other healthcare needs.

Again, it’s an expensive stock trading at 802 times earnings, though it’s just 1.63 times book value. Shares are finally climbing back up by 6% in the last year and 77% year to date! Considering it continues to report record earnings results, it’s about time.

Bottom line

Honestly, both of these companies are solid choices with a strong outlook. However, there is a major shift over to virtual healthcare that isn’t about to start slowing down. What’s more, there is still a lot of convincing needed around the world for remote work to take full effect. With that in mind, I’d say WELL Health stock is the better buy today.

Article Tags:
Article Categories: