GoodRx (NASDAQ:GDRX – Get Free Report) and Teladoc Health (NYSE:TDOC – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Earnings & Valuation
This table compares GoodRx and Teladoc Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoodRx | $792.32 million | 1.02 | $16.39 million | $0.09 | 26.44 |
| Teladoc Health | $2.57 billion | 0.32 | -$1.00 billion | ($1.28) | -3.65 |
Risk and Volatility
GoodRx has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for GoodRx and Teladoc Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoodRx | 3 | 7 | 5 | 0 | 2.13 |
| Teladoc Health | 1 | 12 | 3 | 0 | 2.13 |
GoodRx presently has a consensus target price of $4.73, suggesting a potential upside of 98.70%. Teladoc Health has a consensus target price of $9.12, suggesting a potential upside of 94.98%. Given GoodRx’s stronger consensus rating and higher probable upside, research analysts clearly believe GoodRx is more favorable than Teladoc Health.
Insider and Institutional Ownership
63.8% of GoodRx shares are owned by institutional investors. Comparatively, 76.8% of Teladoc Health shares are owned by institutional investors. 4.5% of GoodRx shares are owned by insiders. Comparatively, 0.6% of Teladoc Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares GoodRx and Teladoc Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GoodRx | 3.97% | 9.73% | 4.79% |
| Teladoc Health | -8.84% | -10.59% | -4.77% |
Summary
GoodRx beats Teladoc Health on 11 of the 14 factors compared between the two stocks.
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.
About Teladoc Health
Teladoc Health, Inc. provides virtual healthcare services worldwide. The company operates through Teladoc Health Integrated Care and BetterHelp segments. The Integrated Care segment offers virtual medical services, including general medical, expert medical, specialty medical, chronic condition management, and mental health, as well as enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment operates a mental health platform that provides online counseling and therapy services through website, mobile applications, phones, and text-based interactions by its licensed clinicians. The company offers its products and services under the Teladoc, Livongo, and BetterHelp brands. It serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. Teladoc Health, Inc. was incorporated in 2002 and is headquartered in Purchase, New York.
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