Financial Analysis: Omnicell (NASDAQ:OMCL) vs. Hims & Hers Health (NYSE:HIMS)

Omnicell (NASDAQ:OMCL) and Hims & Hers Health (NYSE:HIMS) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnicell	1	2	5	0	2.50
Hims & Hers Health	4	9	3	1	2.06

Omnicell presently has a consensus target price of $54.50, suggesting a potential upside of 35.37%. Hims & Hers Health has a consensus target price of $39.32, suggesting a potential upside of 151.67%. Given Hims & Hers Health’s higher possible upside, analysts plainly believe Hims & Hers Health is more favorable than Omnicell.

Institutional & Insider Ownership

97.7% of Omnicell shares are held by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are held by institutional investors. 2.5% of Omnicell shares are held by company insiders. Comparatively, 13.7% of Hims & Hers Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Omnicell has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.43, suggesting that its share price is 143% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnicell	0.17%	3.00%	1.81%
Hims & Hers Health	6.05%	24.67%	9.37%

Valuation and Earnings

This table compares Omnicell 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
Omnicell	$1.18 billion	1.52	$2.05 million	$0.04	1,006.50
Hims & Hers Health	$1.48 billion	2.41	$126.04 million	$0.54	28.93

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

Summary

Hims & Hers Health beats Omnicell on 11 of the 15 factors compared between the two stocks.

About Omnicell

Omnicell, Inc., together with its subsidiaries, provides medication management solutions and adherence tools for healthcare systems and pharmacies the United States and internationally. The company offers point of care automation solutions to improve clinician workflows in patient care areas of the healthcare system; XT Series automated dispensing systems for medications and supplies used in nursing units and other clinical areas of the hospital, as well as specialized automated dispensing systems for operating room; and robotic dispensing systems for handling the stocking and retrieval of boxed medications. It also provides central pharmacy automation solutions; IV compounding robots; and inventory management software. In addition, the company provides single-dose automation solutions that fill and label a variety of patient-specific, single-dose medication blister packaging based on incoming prescriptions; fully automated and semi-automated filling equipment for institutional pharmacies to warrant automated packaging of medications; and medication blister card packaging and packaging supplies to enhance medication adherence in non-acute care settings. Further, it offers EnlivenHealth Patient Engagement, a web-based solutions. The company was formerly known as Omnicell Technologies, Inc. and changed its name to Omnicell, Inc. in 2001. Omnicell, Inc. was incorporated in 1992 and is headquartered in Fort Worth, Texas.

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.