Contrasting GoodRx (NASDAQ:GDRX) & Sonic Healthcare (OTCMKTS:SKHHY)

GoodRx (NASDAQ:GDRX) and Sonic Healthcare (OTCMKTS:SKHHY) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

63.8% of GoodRx shares are held by institutional investors. Comparatively, 0.0% of Sonic Healthcare shares are held by institutional investors. 5.9% of GoodRx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

GoodRx has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Sonic Healthcare has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoodRx	2.61%	7.90%	3.23%
Sonic Healthcare	N/A	N/A	N/A

Earnings and Valuation

This table compares GoodRx and Sonic Healthcare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$796.85 million	1.14	$30.44 million	$0.06	44.17
Sonic Healthcare	$6.25 billion	1.13	$332.61 million	N/A	N/A

Sonic Healthcare has higher revenue and earnings than GoodRx.

Analyst Ratings

This is a summary of recent ratings and target prices for GoodRx and Sonic Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	3	7	5	0	2.13
Sonic Healthcare	1	1	0	0	1.50

GoodRx currently 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, equities analysts plainly believe GoodRx is more favorable than Sonic Healthcare.

Summary

GoodRx beats Sonic Healthcare on 10 of the 12 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 Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.