Critical Comparison: Tivic Health Systems (NASDAQ:TIVC) & Schrodinger (NASDAQ:SDGR)

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

Profitability

This table compares Tivic Health Systems and Schrodinger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tivic Health Systems	-148.49%	-22.69%	-18.94%
Schrodinger	-76.22%	-45.70%	-24.81%

Earnings and Valuation

This table compares Tivic Health Systems and Schrodinger”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tivic Health Systems	$780,000.00	3.28	-$9.31 million	($8.62)	-0.27
Schrodinger	$207.54 million	7.29	-$187.12 million	($2.48)	-8.29

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

Institutional & Insider Ownership

4.3% of Tivic Health Systems shares are owned by institutional investors. Comparatively, 79.1% of Schrodinger shares are owned by institutional investors. 0.5% of Tivic Health Systems shares are owned by company insiders. Comparatively, 21.0% of Schrodinger shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Tivic Health Systems has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Tivic Health Systems and Schrodinger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tivic Health Systems	1	0	0	0	1.00
Schrodinger	1	3	4	0	2.38

Schrodinger has a consensus price target of $26.29, indicating a potential upside of 27.91%. Given Schrodinger’s stronger consensus rating and higher probable upside, analysts clearly believe Schrodinger is more favorable than Tivic Health Systems.

Summary

Schrodinger beats Tivic Health Systems on 9 of the 14 factors compared between the two stocks.

About Tivic Health Systems

Tivic Health Systems Inc. operates as a health tech company, focuses on developing and commercializing bioelectronic medicine. Its primary product is ClearUP, a bioelectronic medicine for the treatment of sinus and nasal inflammation. The company sells its products on direct-to-consumer channel through its own websites; and platforms, such as Amazon.com and Walmart.com, as well as to U.S. online retailers, such as BestBuy and FSAStore and through distributors. Tivic Health Systems, Inc. was incorporated in 2016 and is headquartered in Hayward, California.

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.