Privia Health Group (NASDAQ:PRVA) & Hims & Hers Health (NYSE:HIMS) Critical Review

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

Valuation & Earnings

This table compares Hims & Hers Health and Privia Health Group”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	$2.21 billion	3.06	$126.04 million	$0.54	55.04
Privia Health Group	$1.74 billion	1.62	$14.39 million	$0.13	175.85

Hims & Hers Health has higher revenue and 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.

Volatility & Risk

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

Profitability

This table compares Hims & Hers Health and Privia Health Group’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%
Privia Health Group	0.89%	2.52%	1.47%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hims & Hers Health and Privia Health Group, as reported by MarketBeat.com.

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

Hims & Hers Health presently has a consensus target price of $44.54, suggesting a potential upside of 49.87%. Privia Health Group has a consensus target price of $30.50, suggesting a potential upside of 33.42%. Given Hims & Hers Health’s higher probable upside, research analysts plainly believe Hims & Hers Health is more favorable than Privia Health Group.

Institutional and Insider Ownership

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

Summary

Hims & Hers Health beats Privia Health Group 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 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.