GoodRx (NASDAQ:GDRX – Get Free Report) and Evolent Health (NYSE:EVH – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and target prices for GoodRx and Evolent Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoodRx | 3 | 6 | 4 | 0 | 2.08 |
| Evolent Health | 1 | 4 | 12 | 0 | 2.65 |
GoodRx presently has a consensus price target of $4.14, indicating a potential upside of 10.89%. Evolent Health has a consensus price target of $5.96, indicating a potential upside of 27.31%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts clearly believe Evolent Health is more favorable than GoodRx.
Volatility & Risk
Valuation & Earnings
This table compares GoodRx and Evolent Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoodRx | $796.85 million | 1.60 | $30.44 million | $0.04 | 93.25 |
| Evolent Health | $2.10 billion | 0.25 | -$534.51 million | ($4.57) | -1.03 |
GoodRx has higher earnings, but lower revenue than Evolent Health. Evolent Health 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 GoodRx and Evolent Health’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% |
| Evolent Health | -24.08% | -4.27% | -1.06% |
Insider and Institutional Ownership
63.8% of GoodRx shares are held by institutional investors. 5.9% of GoodRx shares are held by insiders. Comparatively, 1.5% of Evolent Health shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
GoodRx beats Evolent Health 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 Evolent Health
Evolent Health, Inc., through its subsidiary, Evolent Health LLC, offers specialty care management services in oncology, cardiology, and musculoskeletal markets in the United States. The company provides platform for health plan administration and value-based business infrastructure. It offers administrative services, such as health plan services, pharmacy benefits management, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients. In addition, the company provides holistic total cost of care management. Evolent Health, Inc. was founded in 2011 and is headquartered in Arlington, Virginia.
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