Comparing M3 (OTCMKTS:MTHRF) and GoodRx (NASDAQ:GDRX)

M3 (OTCMKTS:MTHRF) and GoodRx (NASDAQ:GDRX) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Insider & Institutional Ownership

19.6% of M3 shares are owned by institutional investors. Comparatively, 63.8% of GoodRx shares are owned by institutional investors. 5.9% of GoodRx shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares M3 and GoodRx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M3	N/A	N/A	N/A	$28.25	0.30
GoodRx	$796.85 million	1.44	$30.44 million	$0.06	55.67

GoodRx has higher revenue and earnings than M3. M3 is trading at a lower price-to-earnings ratio than GoodRx, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares M3 and GoodRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M3	N/A	N/A	N/A
GoodRx	2.61%	7.90%	3.23%

Analyst Ratings

This is a summary of current recommendations and price targets for M3 and GoodRx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M3	0	1	0	0	2.00
GoodRx	3	7	5	0	2.13

GoodRx has a consensus target price of $3.81, suggesting a potential upside of 14.15%. Given GoodRx’s stronger consensus rating and higher probable upside, analysts plainly believe GoodRx is more favorable than M3.

Summary

GoodRx beats M3 on 10 of the 11 factors compared between the two stocks.

About M3

M3, Inc. provides medical-related services primarily to physicians and other healthcare professionals through Internet. The company operates through five reporting segments: Medical Platform, Evidence Solutions, Career Solutions, Site Solutions, and Overseas. It operates m3.com, a members-only web site for providing information to the healthcare professionals; MR-kun, where member doctors can independently and continuously receive information on the m3com platform; QOL-kun that provides life support information other than medical information to members; AskDoctors, where registered doctors answer questions about health and illness from the general public; MDLinx for medical professionals in the United States; and Doctors.net.uk, a website that provides developing services for pharmaceutical companies, as well as provides drug information database in France, Germany, and Spain. The company also provides career services for doctors and pharmacists, recruitment, and posting job advertisements through m3.com CAREER. In addition, it engages in the sales activities and marketing operations for pharmaceuticals and medical devices; development, sale, and support business of electronic medical records and medical equipment for medical institutions; survey service for medical professionals; sale and marketing support businesses for pharmaceutical companies, etc. through the Internet; provision of management support and consulting services to medical institutions, and home-visit nursing services; and provision of human resources services for healthcare professionals, as well as operates clinical trial facilities. The company was formerly known as So-netM3, Inc. and changed its name to M3, Inc. in January 2010. M3, Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

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.