Schrodinger (NASDAQ:SDGR) vs. Zhongchao (NASDAQ:ZCMD) Critical Survey

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

Institutional and Insider Ownership

1.7% of Zhongchao shares are owned by institutional investors. Comparatively, 79.1% of Schrodinger shares are owned by institutional investors. 28.6% of Zhongchao shares are owned by company insiders. Comparatively, 21.0% of Schrodinger shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Zhongchao has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500. Comparatively, Schrodinger has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Zhongchao and Schrodinger, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhongchao	1	0	0	0	1.00
Schrodinger	1	4	6	0	2.45

Schrodinger has a consensus price target of $24.33, suggesting a potential upside of 32.32%. Given Schrodinger’s stronger consensus rating and higher possible upside, analysts clearly believe Schrodinger is more favorable than Zhongchao.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zhongchao	N/A	N/A	N/A
Schrodinger	-68.49%	-48.24%	-24.21%

Earnings & Valuation

This table compares Zhongchao and Schrodinger”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhongchao	$15.86 million	0.90	-$640,000.00	N/A	N/A
Schrodinger	$207.54 million	6.53	-$187.12 million	($2.41)	-7.63

Zhongchao has higher earnings, but lower revenue than Schrodinger.

Summary

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

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.

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.