Health Catalyst (NASDAQ:HCAT) and Schrodinger (NASDAQ:SDGR) Head to Head Review
by Teresa Graham · The Cerbat GemHealth Catalyst (NASDAQ:HCAT – Get Free Report) and Schrodinger (NASDAQ:SDGR – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Health Catalyst and Schrodinger’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Health Catalyst | -34.05% | -6.67% | -3.21% |
| Schrodinger | -68.49% | -48.24% | -24.21% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Health Catalyst and Schrodinger, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Health Catalyst | 1 | 8 | 5 | 0 | 2.29 |
| Schrodinger | 1 | 3 | 4 | 0 | 2.38 |
Health Catalyst presently has a consensus price target of $4.36, indicating a potential upside of 83.35%. Schrodinger has a consensus price target of $25.71, indicating a potential upside of 44.46%. Given Health Catalyst’s higher possible upside, equities research analysts clearly believe Health Catalyst is more favorable than Schrodinger.
Volatility and Risk
Health Catalyst has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.
Insider & Institutional Ownership
85.0% of Health Catalyst shares are owned by institutional investors. Comparatively, 79.1% of Schrodinger shares are owned by institutional investors. 2.6% of Health Catalyst shares are owned by insiders. Comparatively, 21.0% of Schrodinger shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Health Catalyst and Schrodinger”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Health Catalyst | $316.06 million | 0.53 | -$69.50 million | ($1.59) | -1.50 |
| Schrodinger | $256.95 million | 5.10 | -$187.12 million | ($2.41) | -7.39 |
Health Catalyst has higher revenue and earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Summary
Health Catalyst beats Schrodinger on 11 of the 14 factors compared between the two stocks.
About Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, 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.