Labcorp (NYSE:LH – Get Free Report) and Hims & Hers Health (NYSE:HIMS – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.
Earnings and Valuation
This table compares Labcorp and Hims & Hers Health”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Labcorp | $13.95 billion | 2.14 | $876.50 million | $12.19 | 30.10 |
| Hims & Hers Health | $2.35 billion | 2.58 | $128.37 million | ($0.63) | -41.19 |
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 Ratings
This is a breakdown of recent ratings and recommmendations for Labcorp and Hims & Hers Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Labcorp | 0 | 3 | 8 | 1 | 2.83 |
| Hims & Hers Health | 1 | 11 | 3 | 0 | 2.13 |
Labcorp currently has a consensus target price of $369.08, indicating a potential upside of 0.59%. Hims & Hers Health has a consensus target price of $32.43, indicating a potential upside of 24.99%. Given Hims & Hers Health’s higher possible upside, analysts plainly believe Hims & Hers Health is more favorable than Labcorp.
Insider and Institutional Ownership
95.9% of Labcorp shares are held by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are held by institutional investors. 0.8% of Labcorp shares are held by company insiders. Comparatively, 11.8% of Hims & Hers Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Labcorp has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500.
Profitability
This table compares Labcorp and Hims & Hers Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Labcorp | 6.88% | 17.13% | 7.96% |
| Hims & Hers Health | -5.51% | -6.51% | -1.20% |
Summary
Labcorp beats Hims & Hers Health on 11 of the 15 factors compared between the two stocks.
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.
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.
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