Head-To-Head Contrast: Claritev (NYSE:CTEV) & Schrodinger (NASDAQ:SDGR)

Schrodinger (NASDAQ:SDGR) and Claritev (NYSE:CTEV) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$255.87 million	6.52	-$103.26 million	($0.74)	-30.54
Claritev	$965.41 million	0.39	-$284.28 million	($17.01)	-1.30

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

Analyst Recommendations

This is a breakdown of recent ratings for Schrodinger and Claritev, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	2	4	1	2.62
Claritev	1	2	6	0	2.56

Schrodinger presently has a consensus target price of $25.50, indicating a potential upside of 12.83%. Claritev has a consensus target price of $44.83, indicating a potential upside of 103.23%. Given Claritev’s higher possible upside, analysts clearly believe Claritev is more favorable than Schrodinger.

Insider & Institutional Ownership

79.0% of Schrodinger shares are owned by institutional investors. Comparatively, 87.2% of Claritev shares are owned by institutional investors. 10.1% of Schrodinger shares are owned by company insiders. Comparatively, 7.4% of Claritev shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Schrodinger	-20.98%	-16.37%	-8.19%
Claritev	-28.46%	N/A	-5.76%

Volatility and Risk

Schrodinger has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Claritev has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Summary

Schrodinger beats Claritev on 8 of the 15 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 Claritev

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.