Waystar (NASDAQ:WAY – Get Free Report) and Schrodinger (NASDAQ:SDGR – Get Free Report) are both mid-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Insider and Institutional Ownership
79.0% of Schrodinger shares are owned by institutional investors. 3.5% of Waystar 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 will outperform the market over the long term.
Risk & Volatility
Waystar has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Waystar and Schrodinger, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waystar | 0 | 4 | 17 | 2 | 2.91 |
| Schrodinger | 1 | 2 | 4 | 1 | 2.62 |
Waystar presently has a consensus price target of $34.90, indicating a potential upside of 24.66%. Schrodinger has a consensus price target of $25.83, indicating a potential downside of 4.81%. Given Waystar’s stronger consensus rating and higher possible upside, analysts plainly believe Waystar is more favorable than Schrodinger.
Profitability
This table compares Waystar and Schrodinger’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waystar | 11.18% | 7.03% | 4.75% |
| Schrodinger | -20.98% | -16.37% | -8.19% |
Earnings and Valuation
This table compares Waystar and Schrodinger”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waystar | $1.21 billion | 4.45 | $112.09 million | $0.70 | 40.00 |
| Schrodinger | $255.87 million | 7.83 | -$103.26 million | ($0.74) | -36.68 |
Waystar has higher revenue and earnings than Schrodinger. Schrodinger is trading at a lower price-to-earnings ratio than Waystar, indicating that it is currently the more affordable of the two stocks.
Summary
Waystar beats Schrodinger on 11 of the 15 factors compared between the two stocks.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based 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.
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