Critical Survey: GoodRx (NASDAQ:GDRX) & Labcorp (NYSE:LH)

Labcorp (NYSE:LH) and GoodRx (NASDAQ:GDRX) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Risk & Volatility

Labcorp has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Labcorp and GoodRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Labcorp	0	3	10	1	2.86
GoodRx	0	5	5	1	2.64

Labcorp currently has a consensus target price of $274.00, suggesting a potential upside of 4.57%. GoodRx has a consensus target price of $6.55, suggesting a potential upside of 42.29%. Given GoodRx’s higher possible upside, analysts clearly believe GoodRx is more favorable than Labcorp.

Insider & Institutional Ownership

95.9% of Labcorp shares are owned by institutional investors. Comparatively, 63.8% of GoodRx shares are owned by institutional investors. 0.8% of Labcorp shares are owned by insiders. Comparatively, 4.5% of GoodRx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Labcorp	5.55%	15.27%	6.97%
GoodRx	3.57%	7.85%	3.91%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Labcorp	$13.01 billion	1.69	$746.00 million	$8.65	30.29
GoodRx	$792.32 million	2.07	$16.39 million	$0.08	57.50

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

Summary

Labcorp beats GoodRx on 9 of the 14 factors compared between the two stocks.

About Labcorp

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

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.