Critical Comparison: iRhythm Technologies (NASDAQ:IRTC) and Hims & Hers Health (NYSE:HIMS)

Hims & Hers Health (NYSE:HIMS) and iRhythm Technologies (NASDAQ:IRTC) are both mid-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility & Risk

Hims & Hers Health has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Hims & Hers Health and iRhythm Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hims & Hers Health	3	10	2	0	1.93
iRhythm Technologies	1	2	11	1	2.80

Hims & Hers Health presently has a consensus price target of $45.27, suggesting a potential upside of 21.96%. iRhythm Technologies has a consensus price target of $201.57, suggesting a potential upside of 7.05%. Given Hims & Hers Health’s higher possible upside, equities analysts clearly believe Hims & Hers Health is more favorable than iRhythm Technologies.

Institutional & Insider Ownership

63.5% of Hims & Hers Health shares are owned by institutional investors. 17.7% of Hims & Hers Health shares are owned by company insiders. Comparatively, 0.7% of iRhythm Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Hims & Hers Health and iRhythm Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hims & Hers Health	$1.48 billion	5.72	$126.04 million	$0.54	68.74
iRhythm Technologies	$591.84 million	10.25	-$113.29 million	($1.61)	-116.96

Hims & Hers Health has higher revenue and earnings than iRhythm Technologies. iRhythm Technologies 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 Hims & Hers Health and iRhythm Technologies’ 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%
iRhythm Technologies	-7.32%	-41.86%	-4.42%

Summary

Hims & Hers Health beats iRhythm Technologies on 11 of the 15 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 iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.