Analyzing Strata Skin Sciences (NASDAQ:SSKN) and Hims & Hers Health (NYSE:HIMS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Strata Skin Sciences	-35.64%	-476.73%	-33.49%
Hims & Hers Health	5.47%	22.48%	7.02%

Valuation and Earnings

This table compares Strata Skin Sciences and Hims & Hers Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strata Skin Sciences	$30.98 million	0.05	-$10.09 million	($2.67)	-0.10
Hims & Hers Health	$2.35 billion	1.54	$128.37 million	$0.51	31.10

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Strata Skin Sciences and Hims & Hers Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strata Skin Sciences	1	0	0	0	1.00
Hims & Hers Health	3	12	2	0	1.94

Hims & Hers Health has a consensus target price of $32.27, indicating a potential upside of 103.45%. Given Hims & Hers Health’s stronger consensus rating and higher probable upside, analysts clearly believe Hims & Hers Health is more favorable than Strata Skin Sciences.

Volatility & Risk

Strata Skin Sciences has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.55, suggesting that its stock price is 155% more volatile than the S&P 500.

Insider & Institutional Ownership

32.4% of Strata Skin Sciences shares are owned by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are owned by institutional investors. 40.9% of Strata Skin Sciences shares are owned by insiders. Comparatively, 13.7% of Hims & Hers Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Hims & Hers Health beats Strata Skin Sciences on 13 of the 14 factors compared between the two stocks.

About Strata Skin Sciences

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.

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.