Contrasting Schrodinger (SDGR) and The Competition

Schrodinger (NASDAQ:SDGR) is one of 93 publicly-traded companies in the “Healthcare Technology” industry, but how does it contrast to its rivals? We will compare Schrodinger to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

79.0% of Schrodinger shares are held by institutional investors. Comparatively, 42.3% of shares of all “Healthcare Technology” companies are held by institutional investors. 10.1% of Schrodinger shares are held by insiders. Comparatively, 16.0% of shares of all “Healthcare Technology” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Schrodinger and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	3	4	0	2.38
Schrodinger Competitors	451	1528	2735	88	2.51

Schrodinger currently has a consensus price target of $26.67, indicating a potential downside of 12.50%. As a group, “Healthcare Technology” companies have a potential upside of 44.45%. Given Schrodinger’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Schrodinger has less favorable growth aspects than its rivals.

Profitability

This table compares Schrodinger and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schrodinger	-22.02%	-17.66%	-8.89%
Schrodinger Competitors	-778.66%	-33.79%	-15.54%

Earnings and Valuation

This table compares Schrodinger and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Schrodinger	$255.87 million	-$103.26 million	-38.58
Schrodinger Competitors	$352.09 million	-$24.15 million	12.62

Schrodinger’s rivals have higher revenue and earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Schrodinger has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Schrodinger’s rivals have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Summary

Schrodinger rivals beat Schrodinger on 8 of the 13 factors compared.

Schrodinger Company Profile

Schrödinger, Inc., together with its subsidiaries, develops physics-based computational platform that enables discovery of novel molecules for drug development and materials applications. The company operates in two segments, Software and Drug Discovery. The Software segment is focused on licensing its software to transform molecular discovery for life sciences and materials science industries. The Drug Discovery segment focuses on building a portfolio of preclinical and clinical programs, internally and through collaborations. The company serves biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. Schrödinger, Inc. was incorporated in 1990 and is based in New York, New York.