HIMS vs. Teladoc: Which Digital Health Stock Is a Better buy?
18 Outubro 2021 - 8:20AM
Finscreener.org
The coronavirus pandemic has
increased the demand for virtual and healthcare manifold times and,
as a result, the telehealth industry has suddenly become a crowded
space. This industry is expected to have tremendous long-term
prospects. As demand rises, healthcare spending of people in the US
is expected to rise to
$6.2 trillion by
2028. Therefore,
companies that are in a competitive position have a better chance
to deliver market-beating gains for patient
investors.
Teladoc Health Inc. (NYSE:
TDOC) and Hims & Hers
Health Inc. (NYSE:
HIMS) are two interesting stocks in the telehealth
space. While Teladoc is an established player in this crowded
industry, HIMS is a relatively newly listed
competitor.
Teladoc Health Inc
Teladoc offers a personalized and
digital-first approach to medicine for patients located in the U.S.
and abroad. During the pandemic, the shares of this company saw
gigantic growth but started falling as soon as the economy started
to reopen. Its shares have plunged by more than 50% from the
$292-high achieved earlier this year.
However, despite the fall in
stock value and slower membership growth, Teladoc continues to
deliver strong growth in multiple areas. This strong core
performance has pushed up its revenue per member per month in the
second quarter by 142% year over year and 10.3% sequentially.
Moreover, the utilization rate for the companyU+02019s telehealth
platform has also jumped to 21.5% in the second quarter from 16% in
the prior-year period and 19.6% in the previous quarter.
Further, with the acquisition of
Livongo, the company’s future prospects have gotten brighter as
there are tremendous opportunities for Teladoc to cross-sell
between its telehealth customers and LivongoU+02019s client base.
At present, Teladoc’s management expects that their number of
closing deals will have a more significant impact in 2022 than in
the current year and that would help the company to grow top-line
at a compound annual growth rate of 38% over the next few
years.
Hims & Hers Health Inc
Hims & Hers Health Inc. Is an
American telehealth company that is on a mission to make healthcare
systems more accessible to people. It offers free as well as
low-cost telehealth services directly to consumers and also
delivers prescriptions and supplements to the patientU+02019s door
itself. The company has been strategically targeting millennials as
it believes they are the future of digital healthcare and it
intends to grow as per their evolving needs.
HIMS is still in the early growth
stage period and has solid potential. In the first quarter of this
year, the company reported a 75% year-over-year growth in sales,
and in the second quarter, its sales grew by an impressive 69%
beating the analystsU+02019 expectations by a large
margin.
These promising numbers have in
turn also upgraded the company’s expected revenue for the whole
year from between $221 million - $227 million to between $251 -
$255 million. Moreover, the company has also made a couple of
acquisitions like the purchase of teledermatology company
Apostrophe which might boost the company’s performance
significantly.
The bottom-line
Both Teladoc and HIMS offer
compelling growth opportunities and it is very difficult to
comprehend which one of them is the winner in all scenarios.
Teladoc might be a better buy for most investors in general as it
is a market leader with a full suite of products, and is presently
down significantly from its all-time highs. HIMS, on the other
hand, is still in its early growth stage and faces an uphill battle
in the highly competitive telehealth market. As a result, it
involves a little more risk than Teladoc and won’t fit into the
risk appetite of risk-averse investors.
Teladoc Health (NYSE:TDOC)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Teladoc Health (NYSE:TDOC)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024