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

Zacks

10 hours ago

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 & Hers

HIMS 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 Health

Teladoc 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. TDOC

HIMS (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%.