Contrasting Oncology Institute (NASDAQ:TOI) & GoodRx (NASDAQ:GDRX)

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

Insider & Institutional Ownership

36.9% of Oncology Institute shares are owned by institutional investors. Comparatively, 63.8% of GoodRx shares are owned by institutional investors. 8.5% of Oncology Institute shares are owned by insiders. Comparatively, 4.5% of GoodRx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oncology Institute	-14.26%	-1,527.21%	-34.25%
GoodRx	4.33%	8.86%	4.50%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oncology Institute	$393.41 million	1.13	-$64.66 million	($0.68)	-6.99
GoodRx	$792.32 million	1.73	$16.39 million	$0.10	39.50

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Oncology Institute and GoodRx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oncology Institute	1	0	2	1	2.75
GoodRx	0	7	5	0	2.42

Oncology Institute currently has a consensus price target of $7.00, indicating a potential upside of 47.37%. GoodRx has a consensus price target of $5.80, indicating a potential upside of 46.84%. Given Oncology Institute’s stronger consensus rating and higher probable upside, equities analysts plainly believe Oncology Institute is more favorable than GoodRx.

Volatility & Risk

Oncology Institute has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Summary

GoodRx beats Oncology Institute on 11 of the 15 factors compared between the two stocks.

About Oncology Institute

The Oncology Institute, Inc., an oncology company, provides various medical oncology services in the United States. The company operates through three segments: Dispensary, Patient Services, and Clinical Trials & Other. It offers physician services, in-house infusion and dispensary, clinical trial, radiation, outpatient blood product transfusion, and patient support services, as well as educational seminars, support groups, and counseling services. The company also provides managing clinical trials, palliative care programs, stem cell transplants services, and other care delivery models associated with non-community-based academic and tertiary care settings; and conducts clinical trials for a range of pharmaceutical and medical device companies. It serves adult and senior cancer patients. The company has a strategic collaboration with Healthly Forge to offer cancer care services to patients in Southern California. The Oncology Institute, Inc. was founded in 2007 and is headquartered in Cerritos, 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.