Financial Contrast: Hims & Hers Health (NYSE:HIMS) versus CareCloud (NASDAQ:CCLD)

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

Valuation and Earnings

This table compares CareCloud and Hims & Hers Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$110.84 million	0.87	$7.85 million	$0.04	57.00
Hims & Hers Health	$1.48 billion	2.98	$126.04 million	$0.54	35.80

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

Insider & Institutional Ownership

10.2% of CareCloud shares are held by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are held by institutional investors. 14.7% of CareCloud shares are held by insiders. Comparatively, 17.7% of Hims & Hers Health shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for CareCloud and Hims & Hers Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	1	0	2.33
Hims & Hers Health	4	9	3	1	2.06

CareCloud currently has a consensus target price of $3.25, suggesting a potential upside of 42.54%. Hims & Hers Health has a consensus target price of $39.96, suggesting a potential upside of 106.73%. Given Hims & Hers Health’s higher possible upside, analysts plainly believe Hims & Hers Health is more favorable than CareCloud.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareCloud	9.80%	24.31%	17.03%
Hims & Hers Health	6.05%	24.67%	9.37%

Volatility & Risk

CareCloud has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500.

Summary

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

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

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.