Schrodinger (NASDAQ:SDGR – Get Free Report) and Health Catalyst (NASDAQ:HCAT – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Insider and Institutional Ownership
79.0% of Schrodinger shares are owned by institutional investors. Comparatively, 85.0% of Health Catalyst shares are owned by institutional investors. 10.1% of Schrodinger shares are owned by company insiders. Comparatively, 19.4% of Health Catalyst shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Schrodinger has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.
Valuation & Earnings
This table compares Schrodinger and Health Catalyst”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Schrodinger | $255.87 million | 9.63 | -$103.26 million | ($0.79) | -42.27 |
| Health Catalyst | $311.14 million | 0.37 | -$177.97 million | ($2.83) | -0.53 |
Schrodinger has higher earnings, but lower revenue than Health Catalyst. Schrodinger is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Schrodinger and Health Catalyst, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schrodinger | 1 | 3 | 4 | 0 | 2.38 |
| Health Catalyst | 1 | 5 | 2 | 0 | 2.12 |
Schrodinger presently has a consensus target price of $26.67, suggesting a potential downside of 20.14%. Health Catalyst has a consensus target price of $2.01, suggesting a potential upside of 33.00%. Given Health Catalyst’s higher possible upside, analysts clearly believe Health Catalyst is more favorable than Schrodinger.
Profitability
This table compares Schrodinger and Health Catalyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Schrodinger | -22.02% | -17.66% | -8.89% |
| Health Catalyst | -90.61% | -1.83% | -0.80% |
Summary
Schrodinger beats Health Catalyst on 7 of the 13 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 Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
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