Goodrx Holdings Inc

Amazon and GoodRx are signing up Americans for flat-fee prescription plans as health insurance coverage thins, according to a Reuters report on September 29. Amazon charges from $5 a month and GoodRx from $14.99, with both including a range of generic drugs at no extra cost; GoodRx calls its version Companion and bundles telehealth discounts into it. The two are not equal participants, as Amazon is worth about $2.7 trillion and GoodRx about $1.1 billion, so the pharmacy line is a rounding error for one and close to the whole business for the other. GoodRx closed at $3.29 on September 30, more than a third lower than a year ago, while Amazon closed at $249.15 on September 30, about 13% higher than a year ago. Amazon grew revenue 19.60% last quarter with earnings up 244.90%, and its shares trade near 20 times trailing earnings and about 24 times next year's estimates, whereas GoodRx trades at 55 times trailing earnings on a market value near $1.1 billion.

StockStory highlights Amgen and Medpace as healthcare stocks with sustainable market-beating potential while recommending investors avoid GoodRx. Amgen, with a market cap of $191.1 billion, posted 12.3% annual revenue growth over two years on a $37.22 billion base and generates strong free cash flow. Medpace, valued at $13.57 billion, achieved 16.9% organic revenue growth and expanded its free cash flow margin by 8.3 percentage points over five years. GoodRx, in contrast, saw flat sales and negative returns on capital, with a revenue base of $787.9 million that lacks scale. Amgen trades at $346.68 per share, Medpace at $513.06, and GoodRx at $2.76.

GoodRx reported first-quarter revenues of $194 million, down 4.4% year on year, exceeding analysts' expectations by 4.9%. The company also provided full-year revenue guidance that slightly topped estimates. Among the seven healthcare technology stocks tracked, GoodRx posted the slowest revenue growth, while the group overall beat consensus revenue estimates by 1.6% and issued in-line next-quarter guidance. Omnicell delivered the best performance with revenues of $309.9 million, up 14.9% year on year, and Hims & Hers Health was the weakest, with revenues of $608.1 million missing estimates by 1.4%. Astrana Health achieved the fastest revenue growth at 55.6% year on year, and Tandem Diabetes raised its full-year guidance the most among peers.