Comparing Schrodinger (NASDAQ:SDGR) and 111 (NASDAQ:YI)

Schrodinger (NASDAQ:SDGR) and 111 (NASDAQ:YI) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

79.1% of Schrodinger shares are held by institutional investors. Comparatively, 21.3% of 111 shares are held by institutional investors. 21.0% of Schrodinger shares are held by insiders. Comparatively, 43.9% of 111 shares are held 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.

Earnings and Valuation

This table compares Schrodinger and 111″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$207.54 million	6.88	-$187.12 million	($2.48)	-7.84
111	$1.97 billion	0.03	-$1.42 million	($0.64)	-10.27

111 has higher revenue and earnings than Schrodinger. 111 is trading at a lower price-to-earnings ratio than Schrodinger, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Schrodinger has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, 111 has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Schrodinger and 111, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	0	1	4	0	2.80
111	0	0	0	0	0.00

Schrodinger presently has a consensus target price of $31.20, indicating a potential upside of 60.41%. Given Schrodinger’s stronger consensus rating and higher possible upside, analysts plainly believe Schrodinger is more favorable than 111.

Profitability

This table compares Schrodinger and 111’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schrodinger	-76.22%	-45.70%	-24.81%
111	-0.48%	N/A	-2.45%

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 111

111, Inc. engages in the provision of pharmaceutical products and medical services through online retail pharmacy and indirectly through offline pharmacy network. It operates through the B2C and B2B segments. The B2C segment engages in the sale of pharmaceutical and other health and wellness products directly to consumers through 1 Drugstore and its offline pharmacies. The B2B segment includes the sale of pharmaceutical products to pharmacy customers through 1 Drug Mall. The company was founded by Gang Yu and Jun Ling Liu in May 2013 and is headquartered in Shanghai, China.