Critical Review: Hims & Hers Health (NYSE:HIMS) vs. Zepp Health (NYSE:ZEPP)

Hims & Hers Health (NYSE:HIMSGet Free Report) and Zepp Health (NYSE:ZEPPGet Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hims & Hers Health and Zepp Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hims & Hers Health 3 10 3 1 2.12
Zepp Health 1 0 1 0 2.00

Hims & Hers Health currently has a consensus target price of $45.50, indicating a potential upside of 36.05%. Zepp Health has a consensus target price of $64.37, indicating a potential upside of 129.56%. Given Zepp Health’s higher probable upside, analysts plainly believe Zepp Health is more favorable than Hims & Hers Health.

Volatility and Risk

Hims & Hers Health has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Insider & Institutional Ownership

63.5% of Hims & Hers Health shares are held by institutional investors. Comparatively, 52.6% of Zepp Health shares are held by institutional investors. 17.7% of Hims & Hers Health shares are held by company insiders. Comparatively, 36.0% of Zepp Health shares are held by company 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.

Profitability

This table compares Hims & Hers Health and Zepp Health’s 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%
Zepp Health -28.28% -21.45% -9.20%

Valuation and Earnings

This table compares Hims & Hers Health and Zepp Health”s top-line 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 5.16 $126.04 million $0.54 61.93
Zepp Health $182.60 million 2.23 -$75.73 million ($4.11) -6.82

Hims & Hers Health has higher revenue and earnings than Zepp Health. Zepp Health 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.

Summary

Hims & Hers Health beats Zepp Health on 13 of the 15 factors compared between the two stocks.

About Hims & Hers Health

(Get Free Report)

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 Zepp Health

(Get Free Report)

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.

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