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

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

Volatility and Risk

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

Valuation & Earnings

This table compares Outset Medical and Hims & Hers Health”s top-line revenue, earnings per share (EPS) and valuation.

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

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.

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings for Outset Medical and Hims & Hers Health, as reported by MarketBeat.com.

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

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

Institutional and Insider Ownership

63.5% of Hims & Hers Health shares are held by institutional investors. 2.4% of Outset Medical shares are held by insiders. Comparatively, 13.7% of Hims & Hers Health shares are held 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.

Summary

Hims & Hers Health beats Outset Medical on 12 of the 14 factors compared between the two stocks.

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.

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.