HIMS vs. AMWL: Which Stock Has the Stronger Global Growth Strategy?

Core Insights - Virtual healthcare is rapidly evolving, with Hims & Hers Health, Inc. (HIMS) and American Well Corporation (AMWL) leading the charge in different segments of the market [1][2] - HIMS focuses on a direct-to-consumer model offering personalized wellness services, while AMWL targets B2B solutions for healthcare organizations [2] Company Overview - HIMS is a consumer-focused digital health platform providing services such as mental health support, skincare, sexual health, and weight-loss treatments [1] - AMWL specializes in scalable telehealth infrastructure for hospitals, insurers, and health systems, emphasizing platform development and system integration [2] Stock Performance & Valuation - Over the past three months, HIMS stock has decreased by 16%, while AMWL has increased by 0.6%. However, HIMS has seen a significant annual increase of 198.8%, compared to AMWL's decline of 14.9% [3] - HIMS has a forward price-to-sales (P/S) ratio of 3.8, above its three-year median of 2.4, while AMWL's ratio is at 0.4, below its median of 1.1 [5] Growth Metrics - HIMS reported 2.4 million subscribers in Q2 2025, marking a 30.8% year-over-year growth, with average revenue per user increasing to $74 [6][10] - AMWL's software subscriptions accounted for 57.1% of total revenue, reflecting a 47.1% year-over-year increase [12] Strategic Initiatives - HIMS is expanding internationally through acquisitions, including ZAVA, and plans to enter the Canadian market in 2026 [9] - AMWL is enhancing its business model by focusing on higher-margin subscription-based software revenues and optimizing costs, leading to a significant reduction in EBITDA losses [12][13] Earnings Projections - The Zacks Consensus Estimate for HIMS' 2025 earnings per share suggests a 122.2% improvement from 2024 [16] - For AMWL, the 2025 loss per share is projected to improve by 55.8% from 2024 [18] Price Targets - Analysts have set an average price target of $48.67 for HIMS, indicating a potential increase of 10.6% from the last close [20] - The average price target for AMWL is $9.50, suggesting a potential increase of 36.7% from the last close [21] Investment Recommendation - AMWL is positioned as a more compelling investment choice due to its focus on scalable telehealth infrastructure and lower execution risk [23] - HIMS, while showing strong profitability and user engagement, may face challenges going forward, making it less favorable for current investment [24]