Schrodinger (NASDAQ:SDGR – Get Free Report) and Health Catalyst (NASDAQ:HCAT – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Profitability
This table compares Schrodinger and Health Catalyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Schrodinger | -68.49% | -48.24% | -24.21% |
| Health Catalyst | -34.05% | -6.67% | -3.21% |
Earnings and Valuation
This table compares Schrodinger and Health Catalyst”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Schrodinger | $207.54 million | 6.38 | -$187.12 million | ($2.41) | -7.46 |
| Health Catalyst | $306.58 million | 0.53 | -$69.50 million | ($1.59) | -1.43 |
Health Catalyst has higher revenue and earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
79.1% of Schrodinger shares are owned by institutional investors. Comparatively, 85.0% of Health Catalyst shares are owned by institutional investors. 21.0% of Schrodinger shares are owned by insiders. Comparatively, 2.6% of Health Catalyst shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Schrodinger and Health Catalyst, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schrodinger | 1 | 3 | 4 | 0 | 2.38 |
| Health Catalyst | 1 | 8 | 5 | 0 | 2.29 |
Schrodinger currently has a consensus price target of $25.71, suggesting a potential upside of 43.02%. Health Catalyst has a consensus price target of $4.36, suggesting a potential upside of 91.39%. Given Health Catalyst’s higher probable upside, analysts clearly believe Health Catalyst is more favorable than Schrodinger.
Volatility and Risk
Schrodinger has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.
Summary
Health Catalyst beats Schrodinger on 11 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 Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
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