Critical Review: Schrodinger (SDGR) & Its Rivals

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

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%	-18.12%	-9.07%
Schrodinger Competitors	-754.24%	-30.01%	-15.66%

Risk & Volatility

Schrodinger has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Schrodinger’s rivals have a beta of 1.11, meaning that their average share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Schrodinger and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	3	4	0	2.38
Schrodinger Competitors	454	1534	2743	89	2.51

Schrodinger presently has a consensus target price of $26.67, indicating a potential downside of 17.72%. As a group, “Healthcare Technology” companies have a potential upside of 43.66%. Given Schrodinger’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Schrodinger has less favorable growth aspects than its rivals.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Schrodinger	$255.87 million	-$103.26 million	-41.03
Schrodinger Competitors	$342.33 million	-$24.15 million	12.78

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.

Institutional & Insider Ownership

79.0% of Schrodinger shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Healthcare Technology” companies are owned by institutional investors. 10.1% of Schrodinger shares are owned by company insiders. Comparatively, 16.2% of shares of all “Healthcare Technology” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

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

Schrodinger Company Profile

Schrödinger, Inc. develops computational software used to support drug discovery and materials research. Its platform applies physics-based modeling, computational chemistry and machine learning to help researchers analyze molecular properties and identify promising candidates. The company’s tools are used by pharmaceutical and biotechnology companies, academic institutions and other research organizations. Alongside software sales and subscriptions, Schrödinger works with partners on drug discovery programs and advances a portfolio of its own therapeutic candidates.