Zepp Health (NYSE:ZEPP) versus Schrodinger (NASDAQ:SDGR) Head-To-Head Survey

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Schrodinger and Zepp Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	4	5	0	2.40
Zepp Health	1	0	1	0	2.00

Schrodinger currently has a consensus target price of $24.33, indicating a potential upside of 48.19%. Zepp Health has a consensus target price of $64.37, indicating a potential upside of 193.59%. Given Zepp Health’s higher probable upside, analysts plainly believe Zepp Health is more favorable than Schrodinger.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$207.54 million	5.83	-$187.12 million	($2.41)	-6.81
Zepp Health	$182.60 million	1.74	-$75.73 million	($4.11)	-5.33

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

Profitability

This table compares Schrodinger and Zepp Health’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%
Zepp Health	-28.28%	-21.45%	-9.20%

Volatility & Risk

Schrodinger has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

79.1% of Schrodinger shares are held by institutional investors. Comparatively, 52.6% of Zepp Health shares are held by institutional investors. 21.0% of Schrodinger shares are held by insiders. Comparatively, 36.0% of Zepp Health shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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 Zepp Health

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.