GoodRx (NASDAQ:GDRX) & Natera (NASDAQ:NTRA) Critical Survey

GoodRx (NASDAQ:GDRX) and Natera (NASDAQ:NTRA) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

GoodRx has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Natera has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for GoodRx and Natera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	3	7	5	0	2.13
Natera	1	4	14	2	2.81

GoodRx presently has a consensus price target of $3.81, suggesting a potential upside of 33.77%. Natera has a consensus price target of $256.12, suggesting a potential upside of 15.32%. Given GoodRx’s higher probable upside, equities analysts plainly believe GoodRx is more favorable than Natera.

Profitability

This table compares GoodRx and Natera’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%
Natera	-9.05%	-14.74%	-10.27%

Institutional and Insider Ownership

63.8% of GoodRx shares are owned by institutional investors. Comparatively, 99.9% of Natera shares are owned by institutional investors. 5.9% of GoodRx shares are owned by company insiders. Comparatively, 5.1% of Natera shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$796.85 million	1.23	$30.44 million	$0.06	47.50
Natera	$2.31 billion	13.79	-$208.16 million	($1.63)	-136.26

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

Summary

GoodRx beats Natera on 9 of the 15 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 Natera

Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.