Comparing Outset Medical (NASDAQ:OM) and Hims & Hers Health (NYSE:HIMS)

Hims & Hers Health (NYSE:HIMS) and Outset Medical (NASDAQ:OM) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hims & Hers Health and Outset Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hims & Hers Health	3	10	3	1	2.12
Outset Medical	1	1	2	1	2.60

Hims & Hers Health presently has a consensus target price of $45.50, indicating a potential upside of 32.55%. Outset Medical has a consensus target price of $12.67, indicating a potential upside of 276.98%. Given Outset Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Outset Medical is more favorable than Hims & Hers Health.

Volatility & Risk

Hims & Hers Health has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, Outset Medical has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.

Profitability

This table compares Hims & Hers Health and Outset Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hims & Hers Health	6.05%	24.67%	9.37%
Outset Medical	-73.12%	-71.37%	-30.11%

Earnings and Valuation

This table compares Hims & Hers Health and Outset Medical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hims & Hers Health	$1.48 billion	5.29	$126.04 million	$0.54	63.57
Outset Medical	$113.69 million	0.54	-$127.98 million	($13.05)	-0.26

Hims & Hers Health has higher revenue and earnings than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than Hims & Hers Health, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

63.5% of Hims & Hers Health shares are held by institutional investors. 13.7% of Hims & Hers Health shares are held by company insiders. Comparatively, 2.4% of Outset Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Hims & Hers Health beats Outset Medical on 12 of the 14 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 Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.