Critical Contrast: Schrodinger (SDGR) vs. The Competition

Schrodinger (NASDAQ:SDGR) is one of 93 public companies in the “Healthcare Technology” industry, but how does it weigh in compared to its peers? We will compare Schrodinger to similar companies based on the strength of its institutional ownership, risk, profitability, valuation, analyst recommendations, earnings and dividends.

Risk and Volatility

Schrodinger has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Schrodinger’s peers have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares Schrodinger and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Schrodinger	$255.87 million	-$103.26 million	-38.58
Schrodinger Competitors	$352.09 million	-$24.15 million	12.62

Schrodinger’s peers have higher revenue and earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Schrodinger and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schrodinger	-22.02%	-17.66%	-8.89%
Schrodinger Competitors	-778.66%	-33.79%	-15.54%

Insider and Institutional Ownership

79.0% of Schrodinger shares are owned by institutional investors. Comparatively, 42.3% of shares of all “Healthcare Technology” companies are owned by institutional investors. 10.1% of Schrodinger shares are owned by company insiders. Comparatively, 16.0% of shares of all “Healthcare Technology” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	3	4	0	2.38
Schrodinger Competitors	451	1528	2735	88	2.51

Schrodinger presently has a consensus price target of $26.67, indicating a potential downside of 12.50%. As a group, “Healthcare Technology” companies have a potential upside of 44.45%. Given Schrodinger’s peers stronger consensus rating and higher possible upside, analysts plainly believe Schrodinger has less favorable growth aspects than its peers.

Summary

Schrodinger peers beat Schrodinger on 8 of the 13 factors compared.

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.