Surgery Partners (NASDAQ:SGRY) vs. GoodRx (NASDAQ:GDRX) Head-To-Head Contrast

Surgery Partners (NASDAQ:SGRY) and GoodRx (NASDAQ:GDRX) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Surgery Partners has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Earnings and Valuation

This table compares Surgery Partners and GoodRx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surgery Partners	$3.11 billion	0.85	-$168.10 million	($1.43)	-14.39
GoodRx	$792.32 million	1.93	$16.39 million	$0.10	43.90

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

Analyst Ratings

This is a breakdown of recent recommendations for Surgery Partners and GoodRx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surgery Partners	1	3	6	0	2.50
GoodRx	0	7	5	0	2.42

Surgery Partners currently has a consensus target price of $32.00, indicating a potential upside of 55.49%. GoodRx has a consensus target price of $5.80, indicating a potential upside of 32.12%. Given Surgery Partners’ stronger consensus rating and higher probable upside, equities analysts clearly believe Surgery Partners is more favorable than GoodRx.

Insider and Institutional Ownership

63.8% of GoodRx shares are owned by institutional investors. 2.7% of Surgery Partners shares are owned by company insiders. Comparatively, 4.5% of GoodRx shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Surgery Partners	-5.57%	2.51%	1.01%
GoodRx	4.33%	8.86%	4.50%

Summary

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

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

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.