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

The article contrasts Hims & Hers (HIMS) and Amwell (AMWL), highlighting their distinct strategies in virtual healthcare. HIMS, a direct-to-consumer platform, is pursuing aggressive global expansion through acquisitions like ZAVA and reported 2.4 million subscribers in Q2 2025, up 30.8% year-over-year, yet trades at a higher 3.8x P/S. Conversely, Amwell focuses on enterprise-grade telehealth infrastructure, with software subscriptions comprising 57.1% of Q2 2025 revenue and significantly reduced EBITDA losses, bolstered by its Military Health System contract, and trades at a lower 0.4x P/S. Despite HIMS's strong past year stock performance, Zacks recommends AMWL (Zacks Rank #2 Buy) for its lower execution risk and more favorable valuation compared to HIMS (Zacks Rank #4 Sell).

Analysis

The virtual healthcare landscape presents a clear strategic divergence between Hims & Hers Health (HIMS) and American Well Corporation (AMWL). HIMS is executing a high-growth, direct-to-consumer strategy, evidenced by its 30.8% year-over-year subscriber growth to 2.4 million in Q2 2025 and an aggressive international expansion through the ZAVA acquisition in Europe and a planned 2026 entry into Canada. This growth comes at a premium valuation, with HIMS trading at a forward price-to-sales ratio of 3.8x, significantly above its historical median and the sector average, following a 198.8% stock rally over the past year. In contrast, AMWL is pursuing a B2B infrastructure model, successfully pivoting to higher-margin software subscriptions, which now constitute 57.1% of revenue. This strategic shift, anchored by a key contract with the Military Health System, has substantially improved its financial profile, with EBITDA losses narrowing to $4.7 million from $34.9 million year-over-year. AMWL's stock appears undervalued with a forward P/S of 0.4x, and while its projected 2025 earnings improvement of 55.8% is less than HIMS's 122.2%, analyst price targets imply a greater upside of 36.7% for AMWL versus 10.6% for HIMS.

Key Decisions for Investors

• Investors seeking a value and turnaround opportunity in the digital health sector might consider AMWL, given its low 0.4x P/S multiple, improving margins, key governmental contracts, and a Zacks #2 (Buy) rating.
• Despite HIMS's strong top-line growth and successful consumer strategy, its premium valuation at a 3.8x P/S ratio and a Zacks #4 (Sell) rating warrant caution, particularly for new investors after a 198.8% one-year gain.
• The decision between the two stocks hinges on risk appetite: HIMS represents a high-growth but richly valued consumer play, while AMWL offers exposure to a B2B infrastructure provider with a more predictable revenue model and significant valuation upside.