Head-To-Head Review: Schrodinger (NASDAQ:SDGR) vs. Weave Communications (NYSE:WEAV)

Schrodinger (NASDAQ:SDGR) and Weave Communications (NYSE:WEAV) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Institutional & Insider Ownership

79.0% of Schrodinger shares are held by institutional investors. Comparatively, 86.8% of Weave Communications shares are held by institutional investors. 10.1% of Schrodinger shares are held by company insiders. Comparatively, 16.4% of Weave Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Schrodinger and Weave Communications”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$255.87 million	5.53	-$103.26 million	($0.74)	-25.89
Weave Communications	$239.02 million	1.73	-$28.05 million	($0.25)	-20.78

Weave Communications has lower revenue, but higher earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Weave Communications, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Schrodinger has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Schrodinger and Weave Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	4	4	0	2.33
Weave Communications	1	1	3	0	2.40

Schrodinger currently has a consensus target price of $20.25, indicating a potential upside of 5.69%. Weave Communications has a consensus target price of $8.33, indicating a potential upside of 60.41%. Given Weave Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Weave Communications is more favorable than Schrodinger.

Profitability

This table compares Schrodinger and Weave Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schrodinger	-20.98%	-16.37%	-8.19%
Weave Communications	-7.97%	-21.37%	-8.44%

Summary

Weave Communications beats Schrodinger on 9 of the 14 factors compared between the two stocks.

About Schrodinger

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.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.