Critical Analysis: Hims & Hers Health (NYSE:HIMS) versus SOPHiA GENETICS (NASDAQ:SOPH)

SOPHiA GENETICS (NASDAQ:SOPH) and Hims & Hers Health (NYSE:HIMS) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Volatility and Risk

SOPHiA GENETICS has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for SOPHiA GENETICS and Hims & Hers Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	2	0	2.33
Hims & Hers Health	1	13	3	0	2.12

SOPHiA GENETICS currently has a consensus price target of $7.00, suggesting a potential upside of 42.57%. Hims & Hers Health has a consensus price target of $31.29, suggesting a potential upside of 34.67%. Given SOPHiA GENETICS’s stronger consensus rating and higher probable upside, equities analysts plainly believe SOPHiA GENETICS is more favorable than Hims & Hers Health.

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by insiders. Comparatively, 13.7% of Hims & Hers Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$77.27 million	4.35	-$79.00 million	($0.51)	-9.63
Hims & Hers Health	$2.35 billion	2.26	$128.37 million	$0.51	45.55

Hims & Hers Health has higher revenue and earnings than SOPHiA GENETICS. SOPHiA GENETICS 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-44.22%	-50.60%	-21.00%
Hims & Hers Health	5.47%	22.48%	7.02%

Summary

Hims & Hers Health beats SOPHiA GENETICS on 11 of the 14 factors compared between the two stocks.

About SOPHiA GENETICS

SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.

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.