Definitive Healthcare (NASDAQ:DH – Get Free Report) and GoodRx (NASDAQ:GDRX – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Earnings & Valuation
This table compares Definitive Healthcare and GoodRx”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $232.70 million | 0.45 | -$138.93 million | ($1.60) | -0.61 |
| GoodRx | $796.85 million | 1.47 | $30.44 million | $0.04 | 85.75 |
Profitability
This table compares Definitive Healthcare and GoodRx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Definitive Healthcare | -72.28% | 3.55% | 1.63% |
| GoodRx | 2.07% | 7.22% | 2.53% |
Volatility & Risk
Definitive Healthcare has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500.
Insider & Institutional Ownership
98.7% of Definitive Healthcare shares are owned by institutional investors. Comparatively, 63.8% of GoodRx shares are owned by institutional investors. 17.1% of Definitive Healthcare shares are owned by insiders. Comparatively, 5.9% of GoodRx shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Definitive Healthcare and GoodRx, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 3 | 6 | 0 | 1 | 1.90 |
| GoodRx | 3 | 6 | 4 | 0 | 2.08 |
Definitive Healthcare presently has a consensus target price of $1.47, indicating a potential upside of 50.15%. GoodRx has a consensus target price of $4.23, indicating a potential upside of 23.24%. Given Definitive Healthcare’s higher probable upside, research analysts clearly believe Definitive Healthcare is more favorable than GoodRx.
Summary
GoodRx beats Definitive Healthcare on 11 of the 15 factors compared between the two stocks.
About Definitive Healthcare
Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.
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.
Receive News & Ratings for Definitive Healthcare Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Definitive Healthcare and related companies with MarketBeat.com's FREE daily email newsletter.
