Head to Head Review: GoodRx (NASDAQ:GDRX) versus Upwork (NASDAQ:UPWK)

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

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Upwork and GoodRx, as reported by MarketBeat.

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

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

Institutional & Insider Ownership

77.7% of Upwork shares are owned by institutional investors. Comparatively, 63.8% of GoodRx shares are owned by institutional investors. 7.6% of Upwork shares are owned by company insiders. Comparatively, 4.2% of GoodRx shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

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

Valuation and Earnings

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

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

Upwork has higher earnings, but lower revenue 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.

Summary

Upwork beats GoodRx on 10 of the 15 factors compared between the two stocks.

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.

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.