COMPASS Pathways (NASDAQ:CMPS) and GoodRx (NASDAQ:GDRX) Financial Analysis

COMPASS Pathways (NASDAQ:CMPS) and GoodRx (NASDAQ:GDRX) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for COMPASS Pathways and GoodRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
COMPASS Pathways	1	1	7	0	2.67
GoodRx	2	6	6	0	2.29

COMPASS Pathways currently has a consensus price target of $15.88, suggesting a potential upside of 149.22%. GoodRx has a consensus price target of $5.15, suggesting a potential upside of 85.77%. Given COMPASS Pathways’ stronger consensus rating and higher probable upside, analysts plainly believe COMPASS Pathways is more favorable than GoodRx.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
COMPASS Pathways	N/A	N/A	-$155.12 million	($2.72)	-2.34
GoodRx	$792.32 million	1.19	$16.39 million	$0.09	30.78

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

Volatility and Risk

COMPASS Pathways has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Institutional and Insider Ownership

46.2% of COMPASS Pathways shares are held by institutional investors. Comparatively, 63.8% of GoodRx shares are held by institutional investors. 3.9% of COMPASS Pathways shares are held by company insiders. Comparatively, 4.5% of GoodRx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
COMPASS Pathways	N/A	-111.18%	-56.55%
GoodRx	3.97%	9.73%	4.79%

Summary

GoodRx beats COMPASS Pathways on 9 of the 13 factors compared between the two stocks.

About COMPASS Pathways

COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.

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.