Analyzing Establishment Labs (NASDAQ:ESTA) and GoodRx (NASDAQ:GDRX)

Establishment Labs (NASDAQ:ESTAGet Free Report) and GoodRx (NASDAQ:GDRXGet Free Report) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Establishment Labs and GoodRx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Establishment Labs -19.05% -218.77% -12.31%
GoodRx 2.61% 7.90% 3.23%

Volatility and Risk

Establishment Labs has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Valuation and Earnings

This table compares Establishment Labs and GoodRx”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Establishment Labs $211.08 million 12.32 -$51.06 million ($1.49) -59.32
GoodRx $787.89 million 1.23 $30.44 million $0.06 47.08

GoodRx has higher revenue and earnings than Establishment Labs. Establishment Labs 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 current recommendations for Establishment Labs and GoodRx, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Establishment Labs 1 1 7 0 2.67
GoodRx 3 7 5 0 2.13

Establishment Labs presently has a consensus price target of $87.14, indicating a potential downside of 1.40%. GoodRx has a consensus price target of $3.81, indicating a potential upside of 34.96%. Given GoodRx’s higher probable upside, analysts clearly believe GoodRx is more favorable than Establishment Labs.

Institutional and Insider Ownership

72.9% of Establishment Labs shares are held by institutional investors. Comparatively, 63.8% of GoodRx shares are held by institutional investors. 10.0% of Establishment Labs shares are held by company insiders. Comparatively, 5.9% of GoodRx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

GoodRx beats Establishment Labs on 9 of the 14 factors compared between the two stocks.

About Establishment Labs

(Get Free Report)

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander. The company sells its products to physicians, hospitals, and clinics through distributors and direct sales force in Europe, the Middle East, Latin America, and Asia. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.

About GoodRx

(Get Free Report)

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.

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