Hims & Hers Health vs. Intuitive Surgical: Which Healthcare Stock Is a Better Buy for 2027?

Investors seeking long-term growth often weigh the disruptive potential of telehealth against the proven dominance of medical robotics. Choosing between Hims & Hers Health (NYSE:HIMS) and Intuitive Surgical (NASDAQ:ISRG) depends on your appetite for risk and valuation.

Both companies operate within the healthcare sector but serve different ends of the market. Hims & Hers Health focuses on direct-to-consumer digital wellness and personalized prescriptions. Intuitive Surgical builds the complex hardware and software systems that surgeons use to perform minimally invasive procedures in hospitals around the world.

The case for Hims & Hers Health

Hims & Hers Health operates a digital platform that connects patients with licensed healthcare providers. The company sells personalized treatment plans for hair loss, sexual health, mental health, and weight loss. Its business model relies on a substantial majority of revenue from recurring subscription purchases of prescription medications. By utilizing partner pharmacies for fulfillment and affiliated medical groups for consultations, the company maintains a scalable infrastructure.

In FY 2025, revenue reached nearly $2.3 billion, representing a growth rate of approximately 59% compared to the previous year. This rapid expansion followed a strong FY 2024, where revenue reached close to $1.5 billion. The company reported net income of roughly $128.4 million for the 2025 fiscal period. This performance marks a significant shift toward profitability after reporting a net loss in earlier years.

The case for Intuitive Surgical

Intuitive Surgical is a leader among medical device stocks due to its da Vinci surgical system. This platform allows for robotic-assisted surgery, which often leads to shorter recovery times for patients. The company generates revenue through system sales, recurring service contracts, and the sale of disposable instruments. Its primary customers are large hospitals and health systems that integrate these platforms into their operating rooms.

In FY 2025, revenue reached nearly $10 billion, which is a 20.5% increase over the prior year. The company reported a net income of approximately $2.9 billion, resulting in a net margin of roughly 28.4%. This high net margin reflects the percentage of revenue that remains as profit after all expenses are paid. The steady growth in procedure volumes continues to drive the demand for new systems and ongoing instrument replacement.

Risk profile comparison

Hims & Hers Health faces significant regulatory and legal scrutiny, particularly regarding its compounded weight-loss products. Investigations by the DOJ and potential FDA restrictions could disrupt its core operations. The company also depends heavily on third-party medical groups and pharmacies for fulfillment. Furthermore, it is currently involved in patent infringement litigation with Novo Nordisk and competes against well-funded incumbents in a market where brand differentiation is difficult to maintain.

Intuitive Surgical faces competition from major players such as Medtronic (NYSE:MDT) and Johnson & Johnson. These rivals are developing their own robotic surgical platforms, which could lead to pricing pressure. The company is also managing ongoing product liability and antitrust litigation, including a recent $450 million settlement charge. Because its revenue model depends on procedure volumes, any global disruption to elective surgeries or hospital budget cuts poses a risk to its financial results.

Valuation comparison

While Hims & Hers Health appears more affordable based on its sales multiple, Intuitive Surgical trades at a significantly lower multiple of its future earnings estimates.

Which stock would I buy for 2027?

With both of these companies in the medical field, they carry noticeable risk, so it is best to treat each as a more speculative position. For instance, neither company is performing particularly well in 2026, with the share price of Intuitive down 17.2%, while the share price of Hims & Hers is down nearly 26%. But if there could only be one winner between the two, I would lean toward picking Intuitive. The main reason is the uniqueness of its product offerings and the moat that it has created. Being a trusted equipment provider in robot-assisted surgery, even if there is some growing competition, helps create a moat, as not just anyone can build a similar company and instantly receive orders from hospitals. And being that trusted provider helps lead to more repeat customers. For instance, in the third quarter of 2026, Intuitive grew its da Vinci surgical system installed base to 12,094 systems, an increase of 12% compared to the prior-year period. Intuitive also reported revenue of $3 billion for the quarter, an increase of 22%.

In comparison, Hims & Hers has a narrower moat, serving more as a platform that connects consumers with products. It's also becoming an increasingly competitive space, with pharmaceutical companies launching their own direct-to-consumer and direct-to-patient platforms, such as Eli Lilly and Novo Nordisk. To reemphasize, both of these companies have their challenges and should be considered more speculative positions. But Intuitive stands out for its better moat.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly, Hims & Hers Health, Intuitive Surgical, Medtronic, and Novo Nordisk. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.