Head-To-Head Comparison: Hims & Hers Health (NYSE:HIMS) & Privia Health Group (NASDAQ:PRVA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Privia Health Group	0.89%	2.52%	1.47%
Hims & Hers Health	6.05%	24.67%	9.37%

Risk and Volatility

Privia Health Group has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.

Institutional and Insider Ownership

94.5% of Privia Health Group shares are owned by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are owned by institutional investors. 10.7% of Privia Health Group shares are owned by insiders. Comparatively, 17.7% of Hims & Hers Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Privia Health Group and Hims & Hers Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Privia Health Group	0	3	13	0	2.81
Hims & Hers Health	4	9	3	1	2.06

Privia Health Group presently has a consensus target price of $30.50, indicating a potential upside of 27.40%. Hims & Hers Health has a consensus target price of $44.54, indicating a potential upside of 50.33%. Given Hims & Hers Health’s higher possible upside, analysts plainly believe Hims & Hers Health is more favorable than Privia Health Group.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Privia Health Group	$1.74 billion	1.70	$14.39 million	$0.13	184.15
Hims & Hers Health	$1.48 billion	4.57	$126.04 million	$0.54	54.86

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

Summary

Hims & Hers Health beats Privia Health Group on 10 of the 15 factors compared between the two stocks.

About Privia Health Group

Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.

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.