Schrodinger (NASDAQ:SDGR – Get Free Report) and Teladoc Health (NYSE:TDOC – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Schrodinger and Teladoc Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schrodinger | 1 | 2 | 4 | 1 | 2.62 |
| Teladoc Health | 1 | 10 | 5 | 0 | 2.25 |
Schrodinger currently has a consensus target price of $25.50, indicating a potential upside of 12.83%. Teladoc Health has a consensus target price of $7.54, indicating a potential upside of 32.55%. Given Teladoc Health’s higher probable upside, analysts plainly believe Teladoc Health is more favorable than Schrodinger.
Risk & Volatility
Schrodinger has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Teladoc Health has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500.
Institutional & Insider Ownership
79.0% of Schrodinger shares are held by institutional investors. Comparatively, 76.8% of Teladoc Health shares are held by institutional investors. 10.1% of Schrodinger shares are held by company insiders. Comparatively, 0.7% of Teladoc Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Schrodinger and Teladoc Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Schrodinger | -20.98% | -16.37% | -8.19% |
| Teladoc Health | -7.13% | -12.15% | -5.83% |
Earnings & Valuation
This table compares Schrodinger and Teladoc Health”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Schrodinger | $255.87 million | 6.52 | -$103.26 million | ($0.74) | -30.54 |
| Teladoc Health | $2.53 billion | 0.41 | -$200.32 million | ($0.99) | -5.74 |
Schrodinger has higher earnings, but lower revenue than Teladoc Health. Schrodinger is trading at a lower price-to-earnings ratio than Teladoc Health, indicating that it is currently the more affordable of the two stocks.
Summary
Teladoc Health beats Schrodinger on 8 of the 15 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 Teladoc Health
Teladoc Health, Inc. provides virtual healthcare services worldwide. The company operates through Teladoc Health Integrated Care and BetterHelp segments. The Integrated Care segment offers virtual medical services, including general medical, expert medical, specialty medical, chronic condition management, and mental health, as well as enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment operates a mental health platform that provides online counseling and therapy services through website, mobile applications, phones, and text-based interactions by its licensed clinicians. The company offers its products and services under the Teladoc, Livongo, and BetterHelp brands. It serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. Teladoc Health, Inc. was incorporated in 2002 and is headquartered in Purchase, New York.
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