Head-To-Head Survey: Schrodinger (NASDAQ:SDGR) and Tempus AI (NASDAQ:TEM)

Schrodinger (NASDAQ:SDGR) and Tempus AI (NASDAQ:TEM) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$255.87 million	3.24	-$103.26 million	($1.42)	-7.91
Tempus AI	$1.27 billion	6.10	-$245.03 million	($1.41)	-30.80

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Schrodinger and Tempus AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	4	4	0	2.33
Tempus AI	1	4	8	0	2.54

Schrodinger currently has a consensus price target of $21.13, suggesting a potential upside of 88.10%. Tempus AI has a consensus price target of $78.62, suggesting a potential upside of 81.02%. Given Schrodinger’s higher possible upside, analysts plainly believe Schrodinger is more favorable than Tempus AI.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Schrodinger	-40.37%	-29.47%	-14.69%
Tempus AI	-19.27%	-53.30%	-11.28%

Insider and Institutional Ownership

79.1% of Schrodinger shares are owned by institutional investors. Comparatively, 24.2% of Tempus AI shares are owned by institutional investors. 21.0% of Schrodinger shares are owned by company insiders. Comparatively, 26.3% of Tempus AI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Schrodinger has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 5.29, suggesting that its share price is 429% more volatile than the S&P 500.

Summary

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

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.

About Tempus AI

Tempus AI Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. Tempus AI Inc. is based in CHICAGO.