Hims & Hers vs. Teladoc: Which Telehealth Stock Is the Better Buy Now?

Virtual healthcare services, or telehealth, are rapidly becoming a standard of care in the expanding digital healthcare space. This is bringing a new class of tech-driven innovators to the forefront. Hims & Hers Health, Inc. HIMS and Teladoc Health, Inc. TDOC stand out as emerging players in the rapidly evolving digital health space, providing remote consultations and health management solutions to consumers.Hims & Hers is a consumer-first platform transforming the way customers fulfill their health and wellness needs, while Teladoc Health provides virtual access to high-quality care and expertise with a portfolio of services and solutions. With both companies showing promise, the question arises: which stock is the better buy at this moment? Let's delve deeper.3 Reasons to be Bullish on Hims & HersHIMS is pursuing a roadmap of rapid specialty expansion into new conditions that can be treated safely and effectively via telehealth, require ongoing and recurring customer relationships, and for which generic medication has been established as an effective means of treatment. At the end of 2023, it launched access to certain weight loss offerings, which continued to expand during 2024. Promising future care areas for Hims & Hers include sleep disorders and hypertension, which align with its current business model and are prevalent among its customers.The strength of the Hims & Hers brand provides numerous opportunities to partner with and offer new solutions to help transform existing healthcare stakeholders. Yesterday, the company announced a long-term collaboration with Novo Nordisk to make obesity care and treatments more accessible, affordable and connected.More than 65% of new subscribers in 2024 benefited from personalized products. The platform’s proprietary MedMatch AI tool aids in customizing treatment plans by considering factors like side effects and efficacy. Recent launches, including GLP-1-based weight-loss treatments with personalized titration schedules, showcase HIMS’ ability to scale its personalized offerings while maintaining high retention rates.3 Reasons to be Bullish on Teladoc HealthTeladoc Health is broadening its virtual care offerings to capture a larger share of the healthcare continuum — from primary and inpatient care to chronic and mental health management. Its Primary360 platform reimagines virtual primary care through data-driven personalization, dedicated care teams and integrated services like labs and prescriptions, gaining traction among employers and health plans. The company’s Inpatient Connected Care transforms hospital rooms into virtual endpoints, improving operational efficiency and addressing staffing shortages. TDOC is also innovating in chronic care and behavioral health with solutions like myStrength Complete and Chronic Care Complete, offering tech-enabled, scalable care tailored for complex patient needs.Teladoc Health has built a robust global distribution network, anchored by international hubs in Europe, South America and Asia. Its established presence supports partnerships with global insurers, financial services firms and telecom providers — facilitating scalable growth via white-label and co-branded virtual care offerings. TDOC also serves government health systems and private hospitals, while actively expanding BetterHelp into new international markets through localized models. This global footprint strengthens Teladoc Health’s ability to drive revenue diversification and long-term expansion.Teladoc Health aims to maintain its strategy and leadership through selective, scalable acquisitions. In February, it agreed to acquire Catapult Health to enhance its at-home diagnostics and patient engagement capabilities.Stock Performance & Valuation: HIMS vs. TDOCHIMS (down 13.3%) has outperformed TDOC (down 29.7%) over the past three months. In the past year, HIMS has rallied 158.5% against TDOC’s decline of 44.3%.Image Source: Zacks Investment ResearchMeanwhile, Hims & Hers is trading at a forward 12-month price-to-sales (P/S) ratio of 3.1X, above its median of 2.2X over the past three years. Teladoc Health’s forward sales multiple sits at 0.5X, below its last three-year median of 1.2X. While TDOC appears cheap when compared with the Medical sector average of 2.5X, HIMS seems to be expensive. Currently, Hims & Hers and Teladoc Health stocks have a Value Score of C and A, respectively.Image Source: Zacks Investment ResearchComparing EPS Projections: Hims & Hers & Teladoc HealthThe Zacks Consensus Estimate for HIMS’ 2025 earnings per share suggests a 166.7% improvement from 2024.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for TDOC’s 2025 loss per share implies an improvement of 85% from 2024.Image Source: Zacks Investment ResearchPrice Target: HIMS vs. TDOCBased on short-term price targets offered by 15 analysts, the average price target for Hims & Hers comes to $27.50, implying a decline of 53.5% from the last close.Image Source: Zacks Investment ResearchBased on short-term price targets offered by 21 analysts, the average price target for Teladoc Health comes to $10.90, implying a decline of 19.3% from the last close.Image Source: Zacks Investment ResearchChoose HIMS Over TDOC NowWhile both Hims & Hers and Teladoc Health are promising players in the digital health space, HIMS, a Zacks Rank #2 (Buy) stock, presents a more stable and financially sound investment opportunity at this stage. With strong profitability and margins along with consistently growing user engagement, Hims & Hers offers a capital-efficient model that generates substantial free cash flow and delivers steady returns.Teladoc Health, a Zacks Rank #3 (Hold) stock, is rapidly growing and expanding its clinical footprint. However, it is still navigating a choppy business environment. Its fourth-quarter 2024 results were hurt by lower access fees and softer BetterHelp and Integrated Care segment results. For investors seeking lower execution risk, financial predictability and a proven track record, Hims & Hers emerges as a more compelling choice. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teladoc Health, Inc. (TDOC): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks