Schrodinger (NASDAQ:SDGR – Get Free Report) and Hims & Hers Health (NYSE:HIMS – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Profitability
This table compares Schrodinger and Hims & Hers Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Schrodinger | -68.49% | -48.24% | -24.21% |
| Hims & Hers Health | 6.05% | 24.67% | 9.37% |
Volatility & Risk
Schrodinger has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Hims & Hers Health has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schrodinger | 1 | 4 | 5 | 0 | 2.40 |
| Hims & Hers Health | 4 | 9 | 3 | 1 | 2.06 |
Schrodinger currently has a consensus price target of $24.33, indicating a potential upside of 48.19%. Hims & Hers Health has a consensus price target of $44.54, indicating a potential upside of 50.33%. Given Hims & Hers Health’s higher probable upside, analysts plainly believe Hims & Hers Health is more favorable than Schrodinger.
Insider and Institutional Ownership
79.1% of Schrodinger shares are held by institutional investors. Comparatively, 63.5% of Hims & Hers Health shares are held by institutional investors. 21.0% of Schrodinger shares are held by company insiders. Comparatively, 13.7% of Hims & Hers Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Schrodinger and Hims & Hers Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Schrodinger | $207.54 million | 5.83 | -$187.12 million | ($2.41) | -6.81 |
| Hims & Hers Health | $1.48 billion | 4.57 | $126.04 million | $0.54 | 54.86 |
Hims & Hers Health has higher revenue and earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Hims & Hers Health, indicating that it is currently the more affordable of the two stocks.
Summary
Hims & Hers Health beats Schrodinger on 10 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 Hims & Hers Health
Hims & Hers Health, Inc. operates a telehealth consultation platform. It connects consumers to healthcare professionals, enabling them to access medical care for mental health, sexual health, dermatology and primary care. The company was founded in 2017 and is headquartered in San Francisco, CA.
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