Head to Head Analysis: Embecta (NASDAQ:EMBC) vs. GoodRx (NASDAQ:GDRX)

Embecta (NASDAQ:EMBC) and GoodRx (NASDAQ:GDRX) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.08 billion	0.64	$95.40 million	$1.63	7.23
GoodRx	$792.32 million	1.19	$16.39 million	$0.09	30.89

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

Institutional and Insider Ownership

93.8% of Embecta shares are held by institutional investors. Comparatively, 63.8% of GoodRx shares are held by institutional investors. 0.4% of Embecta shares are held by insiders. Comparatively, 4.5% of GoodRx shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Embecta has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Embecta and GoodRx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	0	3	1	0	2.25
GoodRx	2	5	6	0	2.31

Embecta presently has a consensus target price of $18.50, suggesting a potential upside of 57.05%. GoodRx has a consensus target price of $5.25, suggesting a potential upside of 88.85%. Given GoodRx’s stronger consensus rating and higher probable upside, analysts clearly believe GoodRx is more favorable than Embecta.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embecta	8.83%	-24.62%	15.40%
GoodRx	3.97%	9.73%	4.79%

Summary

GoodRx beats Embecta on 8 of the 14 factors compared between the two stocks.

About Embecta

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes. The company primarily sells its products to wholesalers and distributors in the United States and internationally. Embecta Corp. was founded in 1924 and is headquartered in Parsippany, New Jersey.

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.