GoodRx (NASDAQ:GDRX – Get Free Report) and Health Catalyst (NASDAQ:HCAT – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Risk & Volatility
GoodRx has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.
Earnings and Valuation
This table compares GoodRx and Health Catalyst”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoodRx | $796.85 million | 1.44 | $30.44 million | $0.04 | 84.00 |
| Health Catalyst | $292.25 million | 0.45 | -$177.97 million | ($3.68) | -0.48 |
GoodRx has higher revenue and earnings than Health Catalyst. Health Catalyst is trading at a lower price-to-earnings ratio than GoodRx, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for GoodRx and Health Catalyst, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoodRx | 3 | 6 | 4 | 0 | 2.08 |
| Health Catalyst | 1 | 6 | 2 | 0 | 2.11 |
GoodRx currently has a consensus target price of $4.23, indicating a potential upside of 25.81%. Health Catalyst has a consensus target price of $2.15, indicating a potential upside of 22.86%. Given GoodRx’s higher possible upside, analysts plainly believe GoodRx is more favorable than Health Catalyst.
Institutional & Insider Ownership
63.8% of GoodRx shares are held by institutional investors. Comparatively, 85.0% of Health Catalyst shares are held by institutional investors. 5.9% of GoodRx shares are held by company insiders. Comparatively, 19.4% of Health Catalyst shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares GoodRx and Health Catalyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GoodRx | 2.07% | 7.22% | 2.53% |
| Health Catalyst | -90.61% | -1.83% | -0.80% |
Summary
GoodRx beats Health Catalyst on 11 of the 14 factors compared between the two stocks.
About GoodRx
GoodRx Holdings, Inc., together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices. It also offers other healthcare products and services, including subscriptions, and pharma manufacturer solutions, as well as telehealth services through the GoodRx Care platform. It serves pharmacy benefit managers who manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was founded in 2011 and is headquartered in Santa Monica, California.
About Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
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