Financial Analysis: Hims & Hers Health (NYSE:HIMS) vs. Cigna Group (NYSE:CI)

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

Volatility and Risk

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

Profitability

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

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

Insider & Institutional Ownership

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

Earnings and Valuation

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

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

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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cigna Group and Hims & Hers Health, as provided by MarketBeat.

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

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

Summary

Cigna Group beats Hims & Hers Health on 10 of the 14 factors compared between the two stocks.

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.

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.