Head to Head Comparison: Hims & Hers Health (NYSE:HIMS) vs. Cardinal Health (NYSE:CAH)

Cardinal Health (NYSE:CAH) and Hims & Hers Health (NYSE:HIMS) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cardinal Health and Hims & Hers Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardinal Health	0	3	16	0	2.84
Hims & Hers Health	1	11	3	0	2.13

Cardinal Health presently has a consensus price target of $270.69, indicating a potential upside of 8.10%. Hims & Hers Health has a consensus price target of $32.43, indicating a potential upside of 17.55%. Given Hims & Hers Health’s higher probable upside, analysts clearly believe Hims & Hers Health is more favorable than Cardinal Health.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cardinal Health	0.67%	-98.53%	4.69%
Hims & Hers Health	-5.51%	-6.51%	-1.20%

Institutional & Insider Ownership

87.2% of Cardinal Health shares are owned by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are owned by institutional investors. 0.1% of Cardinal Health shares are owned by company insiders. Comparatively, 11.8% of Hims & Hers Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Cardinal Health and Hims & Hers Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardinal Health	$254.25 billion	0.23	$1.71 billion	$7.23	34.63
Hims & Hers Health	$2.58 billion	2.50	$128.37 million	($0.63)	-43.79

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

Volatility & Risk

Cardinal Health has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.44, indicating that its stock price is 144% more volatile than the S&P 500.

Summary

Cardinal Health beats Hims & Hers Health on 9 of the 14 factors compared between the two stocks.

About Cardinal Health

Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

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.