Comparing Health Catalyst (NASDAQ:HCAT) & GoodRx (NASDAQ:GDRX)

GoodRx (NASDAQ:GDRX) and Health Catalyst (NASDAQ:HCAT) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

GoodRx has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoodRx	2.07%	7.22%	2.53%
Health Catalyst	-90.61%	-1.83%	-0.80%

Institutional and Insider Ownership

63.8% of GoodRx shares are owned by institutional investors. Comparatively, 85.0% of Health Catalyst shares are owned by institutional investors. 5.9% of GoodRx shares are owned by company insiders. Comparatively, 19.4% of Health Catalyst shares are owned by company 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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$796.85 million	1.41	$30.44 million	$0.04	82.00
Health Catalyst	$311.14 million	0.42	-$177.97 million	($3.68)	-0.48

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GoodRx and Health Catalyst, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	3	6	4	0	2.08
Health Catalyst	1	7	3	0	2.18

GoodRx presently has a consensus price target of $4.23, suggesting a potential upside of 28.88%. Health Catalyst has a consensus price target of $2.45, suggesting a potential upside of 40.00%. Given Health Catalyst’s stronger consensus rating and higher probable upside, analysts clearly believe Health Catalyst is more favorable than GoodRx.

Summary

GoodRx beats Health Catalyst on 10 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 Health Catalyst

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.