Hims & Hers Health (NYSE:HIMS – Get Free Report) and Labcorp (NYSE:LH – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Risk & Volatility
Hims & Hers Health has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
Profitability
This table compares Hims & Hers Health and Labcorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hims & Hers Health | -5.51% | -6.51% | -1.20% |
| Labcorp | 6.88% | 17.13% | 7.96% |
Insider and Institutional Ownership
63.5% of Hims & Hers Health shares are owned by institutional investors. Comparatively, 95.9% of Labcorp shares are owned by institutional investors. 11.8% of Hims & Hers Health shares are owned by insiders. Comparatively, 0.8% of Labcorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Hims & Hers Health and Labcorp”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hims & Hers Health | $2.35 billion | 2.65 | $128.37 million | ($0.63) | -42.25 |
| Labcorp | $14.59 billion | 2.05 | $876.50 million | $12.19 | 30.19 |
Labcorp has higher revenue and earnings than Hims & Hers Health. Hims & Hers Health is trading at a lower price-to-earnings ratio than Labcorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Hims & Hers Health and Labcorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hims & Hers Health | 1 | 11 | 3 | 0 | 2.13 |
| Labcorp | 0 | 3 | 8 | 1 | 2.83 |
Hims & Hers Health currently has a consensus price target of $32.43, indicating a potential upside of 21.84%. Labcorp has a consensus price target of $369.08, indicating a potential upside of 0.28%. Given Hims & Hers Health’s higher possible upside, equities research analysts clearly believe Hims & Hers Health is more favorable than Labcorp.
Summary
Labcorp beats Hims & Hers Health on 11 of the 15 factors compared between the two stocks.
About Hims & Hers Health
Hims & Hers Health, Inc. operates a telehealth consultation platform. It connects consumers to healthcare professionals, enabling them to access medical care for mental health, sexual health, dermatology and primary care. The company was founded in 2017 and is headquartered in San Francisco, CA.
About Labcorp
Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.
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