Comparing GoodRx (NASDAQ:GDRX) & Surgery Partners (NASDAQ:SGRY)

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

Risk and Volatility

GoodRx has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for GoodRx and Surgery Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	0	7	5	0	2.42
Surgery Partners	1	2	6	0	2.56

GoodRx presently has a consensus price target of $5.80, indicating a potential upside of 35.83%. Surgery Partners has a consensus price target of $32.00, indicating a potential upside of 62.11%. Given Surgery Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Surgery Partners is more favorable than GoodRx.

Valuation and Earnings

This table compares GoodRx and Surgery Partners”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$792.32 million	1.87	$16.39 million	$0.10	42.70
Surgery Partners	$3.11 billion	0.81	-$168.10 million	($1.43)	-13.80

GoodRx has higher earnings, but lower revenue than Surgery Partners. Surgery Partners is trading at a lower price-to-earnings ratio than GoodRx, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

63.8% of GoodRx shares are owned by institutional investors. 4.5% of GoodRx shares are owned by insiders. Comparatively, 2.7% of Surgery Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares GoodRx and Surgery Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoodRx	4.33%	8.86%	4.50%
Surgery Partners	-5.57%	2.51%	1.01%

Summary

GoodRx beats Surgery Partners on 9 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 Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.