Schrodinger (NASDAQ:SDGR) and GoodRx (NASDAQ:GDRX) Financial Contrast

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

Volatility and Risk

GoodRx has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoodRx	2.07%	7.22%	2.53%
Schrodinger	-20.98%	-16.37%	-8.19%

Analyst Recommendations

This is a breakdown of recent recommendations for GoodRx and Schrodinger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoodRx	3	6	4	0	2.08
Schrodinger	1	3	3	0	2.29

GoodRx currently has a consensus price target of $4.23, suggesting a potential upside of 22.53%. Schrodinger has a consensus price target of $20.50, suggesting a potential upside of 4.01%. Given GoodRx’s higher possible upside, equities research analysts clearly believe GoodRx is more favorable than Schrodinger.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoodRx	$796.85 million	1.48	$30.44 million	$0.04	86.25
Schrodinger	$255.87 million	5.69	-$103.26 million	($0.74)	-26.64

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

Institutional & Insider Ownership

63.8% of GoodRx shares are owned by institutional investors. Comparatively, 79.0% of Schrodinger shares are owned by institutional investors. 5.9% of GoodRx shares are owned by insiders. Comparatively, 10.1% of Schrodinger shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

GoodRx beats Schrodinger on 9 of the 14 factors compared between the two stocks.

About GoodRx

GoodRx Holdings, Inc., together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices. It also offers other healthcare products and services, including subscriptions, and pharma manufacturer solutions, as well as telehealth services through the GoodRx Care platform. It serves pharmacy benefit managers who manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was founded in 2011 and is headquartered in Santa Monica, California.

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.