Head to Head Analysis: Schrodinger (NASDAQ:SDGR) versus Predictive Oncology (NASDAQ:POAI)

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

Profitability

This table compares Schrodinger and Predictive Oncology’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%
Predictive Oncology	-587.31%	-722.01%	-167.23%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Schrodinger and Predictive Oncology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	0	2	4	0	2.67
Predictive Oncology	0	1	0	0	2.00

Schrodinger presently has a consensus target price of $27.83, indicating a potential upside of 45.50%. Given Schrodinger’s stronger consensus rating and higher possible upside, research analysts plainly believe Schrodinger is more favorable than Predictive Oncology.

Risk & Volatility

Schrodinger has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Predictive Oncology has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Schrodinger and Predictive Oncology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$207.54 million	6.79	-$187.12 million	($2.48)	-7.71
Predictive Oncology	$1.62 million	6.08	-$12.66 million	($3.05)	-0.30

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

Insider & Institutional Ownership

79.1% of Schrodinger shares are owned by institutional investors. Comparatively, 9.0% of Predictive Oncology shares are owned by institutional investors. 21.0% of Schrodinger shares are owned by company insiders. Comparatively, 3.4% of Predictive Oncology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Schrodinger beats Predictive Oncology on 12 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 Predictive Oncology

Predictive Oncology Inc. operates as a science-driven company on the oncology drug discovery. It provides various solutions for the oncology drug development. The company, through the integration of scientific rigor and machine learning, has developed the ability to advance molecules into medicine by introducing human diversity earlier into the discovery process with the pairing of artificial intelligence and the biobank of approximately 150K tumor samples. It operates through four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment provides services that include the application of AI, collaboration projects, and clinical testing. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using a self-contained automated system that conducts self-interaction chromatography screens using additives and excipients included in protein formulations resulting in soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is headquartered in Eagan, Minnesota.