LifeMD (NASDAQ:LFMD – Get Free Report) and GoodRx (NASDAQ:GDRX – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Earnings & Valuation
This table compares LifeMD and GoodRx”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LifeMD | $212.45 million | 3.22 | -$18.88 million | ($0.34) | -44.29 |
| GoodRx | $792.32 million | 2.02 | $16.39 million | $0.08 | 56.00 |
Analyst Recommendations
This is a summary of current ratings and target prices for LifeMD and GoodRx, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LifeMD | 0 | 1 | 5 | 1 | 3.00 |
| GoodRx | 0 | 5 | 5 | 1 | 2.64 |
LifeMD currently has a consensus price target of $12.00, suggesting a potential downside of 20.32%. GoodRx has a consensus price target of $6.55, suggesting a potential upside of 46.10%. Given GoodRx’s higher possible upside, analysts plainly believe GoodRx is more favorable than LifeMD.
Risk & Volatility
LifeMD has a beta of 2.42, indicating that its share price is 142% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Profitability
This table compares LifeMD and GoodRx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LifeMD | -4.58% | N/A | -15.19% |
| GoodRx | 3.57% | 7.85% | 3.91% |
Institutional & Insider Ownership
35.5% of LifeMD shares are owned by institutional investors. Comparatively, 63.8% of GoodRx shares are owned by institutional investors. 18.4% of LifeMD shares are owned by company insiders. Comparatively, 4.5% of GoodRx shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
GoodRx beats LifeMD on 9 of the 13 factors compared between the two stocks.
About LifeMD
LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.
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.
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