Zepp Health (NYSE:ZEPP – Get Free Report) and Schrodinger (NASDAQ:SDGR – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
52.6% of Zepp Health shares are owned by institutional investors. Comparatively, 79.1% of Schrodinger shares are owned by institutional investors. 36.0% of Zepp Health shares are owned by company insiders. Comparatively, 21.0% of Schrodinger shares are owned 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.
Volatility & Risk
Zepp Health has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zepp Health | 1 | 0 | 1 | 0 | 2.00 |
| Schrodinger | 1 | 4 | 5 | 0 | 2.40 |
Zepp Health presently has a consensus price target of $64.37, indicating a potential upside of 179.50%. Schrodinger has a consensus price target of $24.33, indicating a potential upside of 56.69%. Given Zepp Health’s higher possible upside, analysts clearly believe Zepp Health is more favorable than Schrodinger.
Profitability
This table compares Zepp Health and Schrodinger’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zepp Health | -28.28% | -21.45% | -9.20% |
| Schrodinger | -68.49% | -48.24% | -24.21% |
Valuation and Earnings
This table compares Zepp Health and Schrodinger”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zepp Health | $182.60 million | 1.83 | -$75.73 million | ($4.11) | -5.60 |
| Schrodinger | $207.54 million | 5.51 | -$187.12 million | ($2.41) | -6.44 |
Zepp Health has higher earnings, but lower revenue than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Zepp Health, indicating that it is currently the more affordable of the two stocks.
About Zepp Health
Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.
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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