Head-To-Head Contrast: GoodRx (NASDAQ:GDRX) versus TELUS International (Cda) (NYSE:TIXT)

GoodRx (NASDAQ:GDRX) and TELUS International (Cda) (NYSE:TIXT) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

63.8% of GoodRx shares are owned by institutional investors. Comparatively, 59.5% of TELUS International (Cda) shares are owned by institutional investors. 4.2% of GoodRx shares are owned by insiders. Comparatively, 4.8% of TELUS International (Cda) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares GoodRx and TELUS International (Cda)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$750.27 million	2.47	-$8.87 million	($0.03)	-163.00
TELUS International (Cda)	$2.66 billion	0.18	$54.00 million	($0.05)	-89.20

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for GoodRx and TELUS International (Cda), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	1	4	9	1	2.67
TELUS International (Cda)	2	13	1	0	1.94

GoodRx currently has a consensus target price of $9.07, indicating a potential upside of 85.51%. TELUS International (Cda) has a consensus target price of $7.37, indicating a potential upside of 65.14%. Given GoodRx’s stronger consensus rating and higher probable upside, research analysts plainly believe GoodRx is more favorable than TELUS International (Cda).

Risk and Volatility

GoodRx has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, TELUS International (Cda) has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares GoodRx and TELUS International (Cda)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoodRx	-2.05%	5.37%	2.45%
TELUS International (Cda)	2.70%	11.66%	4.96%

Summary

GoodRx beats TELUS International (Cda) on 8 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 TELUS International (Cda)

TELUS International (Cda) Inc. design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection. It also offers IT lifecycle services comprising cloud platform solutions, managed IT services, application development and management, quality assurance and testing, system operations, IT service desk, internet of things, engineering solutions, and enterprise platform services; advisory services consists of digital strategy, CX process consulting, data and customer analytics, workforce management, learning excellence solutions, and business and process transformation; back office and automation solutions, such as robotic process automation, talent acquisition, finance and accounting, and supply chain management; and trust, safety, and security services, including content moderation and social media community management, and fraud prevention and detection. In addition, the company provides AI data solutions comprising data collection and creation, data annotation, data validation and relevance, and linguistic annotation for video, audio, text, image, and geographical data, as well as 3D sensor fusion. It serves technology and gaming, communications and media, ecommerce, financial services and financial technology, healthcare, travel and hospitality, and automotive industries. The company was founded in 2005 and is headquartered in Vancouver, Canada. TELUS International (Cda) Inc. operates as a subsidiary of TELUS Communications Inc.