Critical Review: GoodRx (NASDAQ:GDRX) & Sonic Healthcare (OTCMKTS:SKHHY)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonic Healthcare	$6.25 billion	1.06	$332.61 million	N/A	N/A
GoodRx	$796.85 million	1.04	$30.44 million	$0.06	40.50

Sonic Healthcare has higher revenue and earnings than GoodRx.

Volatility & Risk

Sonic Healthcare has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Profitability

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

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonic Healthcare	1	1	0	0	1.50
GoodRx	3	7	5	0	2.13

GoodRx has a consensus target price of $3.81, indicating a potential upside of 56.89%. Given GoodRx’s stronger consensus rating and higher probable upside, analysts clearly believe GoodRx is more favorable than Sonic Healthcare.

Institutional & Insider Ownership

0.0% of Sonic Healthcare shares are held by institutional investors. Comparatively, 63.8% of GoodRx shares are held by institutional investors. 5.9% of GoodRx shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

GoodRx beats Sonic Healthcare on 9 of the 12 factors compared between the two stocks.

About Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.

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.