Comparing Embecta (NASDAQ:EMBC) and GoodRx (NASDAQ:GDRX)

GoodRx (NASDAQ:GDRX) and Embecta (NASDAQ:EMBC) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Volatility and Risk

GoodRx has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Embecta has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoodRx	3.97%	9.73%	4.79%
Embecta	8.83%	-24.62%	15.40%

Earnings & Valuation

This table compares GoodRx and Embecta”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$792.32 million	1.19	$16.39 million	$0.09	30.78
Embecta	$1.08 billion	0.64	$95.40 million	$1.63	7.21

Embecta has higher revenue and earnings than GoodRx. Embecta 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 summary of recent ratings and recommmendations for GoodRx and Embecta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	2	6	6	0	2.29
Embecta	0	3	1	0	2.25

GoodRx presently has a consensus price target of $5.15, indicating a potential upside of 85.77%. Embecta has a consensus price target of $18.50, indicating a potential upside of 57.45%. Given GoodRx’s stronger consensus rating and higher possible upside, research analysts clearly believe GoodRx is more favorable than Embecta.

Insider & Institutional Ownership

63.8% of GoodRx shares are owned by institutional investors. Comparatively, 93.8% of Embecta shares are owned by institutional investors. 4.5% of GoodRx shares are owned by company insiders. Comparatively, 0.4% of Embecta shares are owned by company 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.

Summary

GoodRx beats Embecta on 8 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 Embecta

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes. The company primarily sells its products to wholesalers and distributors in the United States and internationally. Embecta Corp. was founded in 1924 and is headquartered in Parsippany, New Jersey.