Analyzing Fulgent Genetics (NASDAQ:FLGT) and Schrodinger (NASDAQ:SDGR)

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

Institutional & Insider Ownership

48.1% of Fulgent Genetics shares are held by institutional investors. Comparatively, 79.1% of Schrodinger shares are held by institutional investors. 31.8% of Fulgent Genetics shares are held by company insiders. Comparatively, 21.0% of Schrodinger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Fulgent Genetics and Schrodinger”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulgent Genetics	$303.22 million	2.22	-$42.71 million	($1.66)	-13.27
Schrodinger	$207.54 million	6.75	-$187.12 million	($2.48)	-7.67

Fulgent Genetics has higher revenue and earnings than Schrodinger. Fulgent Genetics 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

Fulgent Genetics has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fulgent Genetics	-16.83%	-2.26%	-2.10%
Schrodinger	-76.22%	-45.70%	-24.81%

Analyst Recommendations

This is a summary of recent recommendations for Fulgent Genetics and Schrodinger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulgent Genetics	0	1	2	0	2.67
Schrodinger	0	2	4	0	2.67

Fulgent Genetics presently has a consensus price target of $25.33, suggesting a potential upside of 14.99%. Schrodinger has a consensus price target of $27.83, suggesting a potential upside of 46.26%. Given Schrodinger’s higher probable upside, analysts plainly believe Schrodinger is more favorable than Fulgent Genetics.

Summary

Fulgent Genetics beats Schrodinger on 7 of the 13 factors compared between the two stocks.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, 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.