Comparing GoodRx (NASDAQ:GDRX) and Upwork (NASDAQ:UPWK)

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

Volatility and Risk

GoodRx has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Upwork has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Valuation and Earnings

This table compares GoodRx and Upwork”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$790.39 million	2.24	-$8.87 million	($0.03)	-155.00
Upwork	$769.33 million	2.77	$215.59 million	$1.53	10.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoodRx	-2.05%	5.35%	2.51%
Upwork	28.02%	50.83%	20.13%

Institutional & Insider Ownership

63.8% of GoodRx shares are held by institutional investors. Comparatively, 77.7% of Upwork shares are held by institutional investors. 4.2% of GoodRx shares are held by company insiders. Comparatively, 7.6% of Upwork shares are held 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	0	5	9	1	2.73
Upwork	0	3	8	0	2.73

GoodRx currently has a consensus price target of $8.38, indicating a potential upside of 80.11%. Upwork has a consensus price target of $18.91, indicating a potential upside of 20.06%. Given GoodRx’s stronger consensus rating and higher possible upside, equities research analysts plainly believe GoodRx is more favorable than Upwork.

Summary

Upwork beats GoodRx on 10 of the 15 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 Upwork

Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.