Analyzing First Choice Healthcare Solutions (OTCMKTS:FCHS) and GoodRx (NASDAQ:GDRX)

First Choice Healthcare Solutions (OTCMKTS:FCHS) and GoodRx (NASDAQ:GDRX) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

63.8% of GoodRx shares are owned by institutional investors. 30.8% of First Choice Healthcare Solutions shares are owned by insiders. Comparatively, 5.9% of GoodRx shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares First Choice Healthcare Solutions and GoodRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Choice Healthcare Solutions	N/A	N/A	-170.37%
GoodRx	2.61%	7.90%	3.23%

Risk & Volatility

First Choice Healthcare Solutions has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Choice Healthcare Solutions and GoodRx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Choice Healthcare Solutions	0	0	0	0	0.00
GoodRx	3	7	5	0	2.13

GoodRx has a consensus price target of $3.81, indicating a potential upside of 43.87%. Given GoodRx’s stronger consensus rating and higher possible upside, analysts clearly believe GoodRx is more favorable than First Choice Healthcare Solutions.

Valuation & Earnings

This table compares First Choice Healthcare Solutions and GoodRx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Choice Healthcare Solutions	$10,000.00	14.17	-$6.96 million	($0.20)	-0.02
GoodRx	$796.85 million	1.14	$30.44 million	$0.06	44.17

GoodRx has higher revenue and earnings than First Choice Healthcare Solutions. First Choice Healthcare Solutions is trading at a lower price-to-earnings ratio than GoodRx, indicating that it is currently the more affordable of the two stocks.

Summary

GoodRx beats First Choice Healthcare Solutions on 12 of the 14 factors compared between the two stocks.

About First Choice Healthcare Solutions

First Choice Healthcare Solutions, Inc. provides healthcare services in the United States. It develops primary care and wellness clinics focused on providing life improvement services, such as anti-aging, weight management, hormone replacement, and pharmacy services. The company is headquartered in Melbourne, Florida.

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.