Schrodinger (NASDAQ:SDGR) and Weave Communications (NYSE:WEAV) Critical Comparison

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Weave Communications and Schrodinger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weave Communications	1	1	4	0	2.50
Schrodinger	1	3	3	0	2.29

Weave Communications currently has a consensus target price of $8.31, indicating a potential upside of 14.10%. Schrodinger has a consensus target price of $20.50, indicating a potential upside of 18.43%. Given Schrodinger’s higher possible upside, analysts plainly believe Schrodinger is more favorable than Weave Communications.

Institutional and Insider Ownership

86.8% of Weave Communications shares are owned by institutional investors. Comparatively, 79.1% of Schrodinger shares are owned by institutional investors. 16.4% of Weave Communications shares are owned by insiders. Comparatively, 10.1% of Schrodinger shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Weave Communications has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weave Communications	-7.97%	-21.14%	-8.41%
Schrodinger	-20.98%	-16.37%	-8.19%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weave Communications	$239.02 million	2.44	-$28.05 million	($0.25)	-29.14
Schrodinger	$259.04 million	4.93	-$103.26 million	($0.74)	-23.39

Weave Communications has higher earnings, but lower revenue than Schrodinger. Weave Communications is trading at a lower price-to-earnings ratio than Schrodinger, indicating that it is currently the more affordable of the two stocks.

Summary

Weave Communications beats Schrodinger on 8 of the 14 factors compared between the two stocks.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

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.