Analyzing Hims & Hers Health (NYSE:HIMS) & Cigna Group (NYSE:CI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hims & Hers Health	-5.51%	-6.51%	-1.20%
Cigna Group	2.09%	19.57%	5.35%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hims & Hers Health	1	11	3	0	2.13
Cigna Group	0	8	14	0	2.64

Hims & Hers Health presently has a consensus target price of $32.43, indicating a potential upside of 24.99%. Cigna Group has a consensus target price of $335.70, indicating a potential upside of 14.32%. Given Hims & Hers Health’s higher probable upside, analysts plainly believe Hims & Hers Health is more favorable than Cigna Group.

Volatility & Risk

Hims & Hers Health has a beta of 2.53, meaning that its stock price is 153% more volatile than the S&P 500. Comparatively, Cigna Group has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Institutional and Insider Ownership

63.5% of Hims & Hers Health shares are held by institutional investors. Comparatively, 87.0% of Cigna Group shares are held by institutional investors. 11.8% of Hims & Hers Health shares are held by company insiders. Comparatively, 0.6% of Cigna Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Hims & Hers Health and Cigna Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hims & Hers Health	$2.35 billion	2.58	$128.37 million	($0.63)	-41.19
Cigna Group	$285.98 billion	0.27	$5.96 billion	$22.66	12.96

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

Summary

Cigna Group beats Hims & Hers Health on 10 of the 14 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 Cigna Group

The Cigna Group, together with its subsidiaries, provides insurance and related products and services in the United States. Its Evernorth Health Services segment provides a range of coordinated and point solution health services, including pharmacy benefits, home delivery pharmacy, specialty pharmacy, distribution, and care delivery and management solutions to health plans, employers, government organizations, and health care providers. The company's Cigna Healthcare segment offers medical, pharmacy, behavioral health, dental, and other products and services for insured and self-insured customers; Medicare Advantage, Medicare Supplement, and Medicare Part D plans for seniors, as well as individual health insurance plans; and health care coverage in its international markets, as well as health care benefits for mobile individuals and employees of multinational organizations. In addition, it offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for financing employer-paid future benefit obligations. The company distributes its products and services through insurance brokers and consultants; directly to employers, unions and other groups, or individuals; and private and public exchanges. The company was formerly known as Cigna Corporation and changed its name to The Cigna Group in February 2023. The Cigna Group was founded in 1792 and is headquartered in Bloomfield, Connecticut.