Jamieson Wellness (TSX:JWEL) and WELL Health Technologies (TSX:WELL) are two intriguing value options on the TSX Index these days. Both wellness companies trade at under $35 and are compelling options for investors looking to capitalize on the secular trend of health and wellness over the next decade and beyond.
Indeed, Jamieson is the least exciting of the two wellness stocks on this list. It’s the vitamin and mineral maker that we Canadians know and love. For nearly a century, the Jamieson brand has grown into a household staple, and its products with green caps are unmistakable.
In prior pieces, I’ve stated that Jamieson had a durable competitive edge in a commoditized industry. As you may know, private labels are taking over across a wide range of consumer-packaged products. And vitamins and minerals have not been spared. While Omega-3 fatty acids and various other supplements may differ in quality, a majority of the more popular vitamins and minerals don’t vary much (think Vitamin C or D). But what separates a brand like Jamieson from the pack?
It all comes down to quality control and Jamieson’s reputation for quality. Many vitamin and mineral makers may not have nearly as much supplement per dose as they tout. Undoubtedly, not getting enough of a particular vitamin or mineral could have a negative impact on one’s health and wellbeing. That’s why it’s often worthwhile to pay the extra premium for Jamieson’s trusted product.
In a way, Jamieson’s green cap is a seal of quality. As the company capitalizes on the global trend of increased health consciousness (which probably received a boost amid the global health crisis that is the COVID-19 pandemic), I think JWEL stock will continue trending higher over the long run, outpacing the broader market indices.
Undoubtedly, health and wellness is a powerful secular trend, one that spans generational cohorts. Millennials and Baby Boomers alike are taking care of their health, and with that, I suspect steady and rising demand for Jamieson’s products, all while the firm expands into new-age products, like protein supplements and gummies.
After plunging over 22% since last November, I’m inclined to pound the table.
WELL Health Technologies
For those looking for a sexier way to play the health and wellness trend, WELL Health is a compelling option. WELL is a newcomer on the TSX scene, blasting off 100% over this past year and a jaw-dropping 5,408% over the past five years. From unknown penny stock to a $1.5 billion mid-cap, it’s been quite a journey for the high-tech firm. Given the run, is it too late to punch your ticket? Or does the digital health tech up-and-comer have room to run?
There’s no question that the field of digital health is exciting. Fool contributor Amy Legate-Wolfe seems to be bullish on telehealth but is a bigger fan of some of the smaller names on the TSX that could hold more potential.
Undoubtedly, WELL stock’s 22.5 times sales multiple is steep. That said, I think the name isn’t as frothy as some of the other high-growth names in the space. Recently, the company launched WELL Ventures, a subsidiary that aims to invest in smaller innovators in the digital health space. The venture arm made a $250,000 investment in Bright — a move that could pay off big over the long haul.
Yes, WELL looks pricey. But I think growth-savvy investors should think strongly about getting some skin in the game while the stock lags.