Waystar (NASDAQ:WAY – Get Free Report) and Schrodinger (NASDAQ:SDGR – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Insider and Institutional Ownership
79.0% of Schrodinger shares are held by institutional investors. 3.5% of Waystar shares are held by company insiders. Comparatively, 10.1% of Schrodinger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Waystar has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Waystar and Schrodinger, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waystar | 0 | 4 | 17 | 2 | 2.91 |
| Schrodinger | 1 | 3 | 4 | 0 | 2.38 |
Waystar currently has a consensus target price of $35.23, indicating a potential upside of 24.26%. Schrodinger has a consensus target price of $26.67, indicating a potential downside of 10.57%. Given Waystar’s stronger consensus rating and higher possible upside, research analysts clearly believe Waystar is more favorable than Schrodinger.
Earnings and Valuation
This table compares Waystar and Schrodinger”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waystar | $1.10 billion | 4.95 | $112.09 million | $0.69 | 41.09 |
| Schrodinger | $255.87 million | 8.60 | -$103.26 million | ($0.79) | -37.75 |
Waystar has higher revenue and earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Waystar, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Waystar and Schrodinger’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waystar | 10.70% | 6.95% | 4.69% |
| Schrodinger | -20.98% | -16.37% | -8.19% |
Summary
Waystar beats Schrodinger on 11 of the 15 factors compared between the two stocks.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
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.
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