Schrodinger (NASDAQ:SDGR – Get Free Report) and Waystar (NASDAQ:WAY – Get Free Report) are both mid-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Analyst Recommendations
This is a summary of recent ratings and price targets for Schrodinger and Waystar, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schrodinger | 1 | 2 | 4 | 1 | 2.62 |
| Waystar | 0 | 4 | 17 | 2 | 2.91 |
Schrodinger presently has a consensus price target of $25.83, suggesting a potential downside of 4.81%. Waystar has a consensus price target of $34.90, suggesting a potential upside of 24.66%. Given Waystar’s stronger consensus rating and higher possible upside, analysts clearly believe Waystar is more favorable than Schrodinger.
Institutional and Insider Ownership
79.0% of Schrodinger shares are held by institutional investors. 10.1% of Schrodinger shares are held by insiders. Comparatively, 3.5% of Waystar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Schrodinger has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Waystar has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.
Profitability
This table compares Schrodinger and Waystar’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% |
| Waystar | 11.18% | 7.03% | 4.75% |
Valuation & Earnings
This table compares Schrodinger and Waystar”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Schrodinger | $255.87 million | 7.83 | -$103.26 million | ($0.74) | -36.68 |
| Waystar | $1.21 billion | 4.45 | $112.09 million | $0.70 | 40.00 |
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.
Summary
Waystar beats Schrodinger on 11 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 Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
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