Contrasting Veradigm (NASDAQ:MDRX) and Schrodinger (NASDAQ:SDGR)

Veradigm (NASDAQ:MDRX) and Schrodinger (NASDAQ:SDGR) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares Veradigm and Schrodinger”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veradigm	$1.53 billion	0.39	N/A	N/A	N/A
Schrodinger	$255.87 million	5.24	-$103.26 million	($1.41)	-12.88

Veradigm has higher revenue and earnings than Schrodinger.

Analyst Recommendations

This is a summary of current ratings and price targets for Veradigm and Schrodinger, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veradigm	0	0	0	0	0.00
Schrodinger	1	4	4	0	2.33

Schrodinger has a consensus price target of $20.25, suggesting a potential upside of 11.51%. Given Schrodinger’s stronger consensus rating and higher probable upside, analysts plainly believe Schrodinger is more favorable than Veradigm.

Profitability

This table compares Veradigm and Schrodinger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veradigm	N/A	N/A	N/A
Schrodinger	-20.98%	-16.37%	-8.19%

Risk and Volatility

Veradigm has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Insider and Institutional Ownership

79.0% of Schrodinger shares are owned by institutional investors. 2.3% of Veradigm shares are owned by company insiders. Comparatively, 10.1% of Schrodinger shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Schrodinger beats Veradigm on 7 of the 12 factors compared between the two stocks.

About Veradigm

Veradigm Inc., a healthcare technology company, provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. It offers electronic health records (EHR), information connectivity, private cloud hosting, outsourcing, analytics, patient access, and population health management solutions. The company operates through two segments, Hospitals and Large Physician Practices, and Veradigm. The Hospitals and Large Physician Practices segment provides integrated clinical and financial management solutions, which primarily include EHR-related software; and related installation, support and maintenance, outsourcing, private cloud hosting, and revenue cycle management services. The Veradigm segment offers payer and life sciences solutions, which are primarily targeted at payers, life sciences companies, and other healthcare stakeholders; and software applications for patient engagement and EHR software to single-specialty, and small and mid-sized physician practices, including related clinical, financial, administrative, and operational solutions. Its solutions enable clients to transition, analyze, and coordinate care, and enhance the healthcare delivery across the care community. The company serves physicians, hospitals, governments and militaries, health systems, health plans, life-sciences companies, retail clinics, surgery centers, retail pharmacies, pharmacy benefit managers, insurance companies, employer wellness clinics, consumers, lab companies, urgent care facilities, and venture capital firms, as well as post-acute organizations, such as home health and hospice agencies. The company was formerly known as Allscripts Healthcare Solutions, Inc. and changed its name to Veradigm Inc. in January 2023. Veradigm Inc. was founded in 1986 and is headquartered in Chicago, Illinois.

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.