Schrodinger (NASDAQ:SDGR) and Butterfly Network (NYSE:BFLY) Financial Review

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

Institutional & Insider Ownership

79.1% of Schrodinger shares are held by institutional investors. Comparatively, 37.9% of Butterfly Network shares are held by institutional investors. 21.0% of Schrodinger shares are held by company insiders. Comparatively, 25.2% of Butterfly Network shares are held 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Schrodinger and Butterfly Network, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrodinger	1	4	4	0	2.33
Butterfly Network	1	2	3	0	2.33

Schrodinger currently has a consensus price target of $20.50, suggesting a potential upside of 59.29%. Butterfly Network has a consensus price target of $5.56, suggesting a potential upside of 15.40%. Given Schrodinger’s higher probable upside, research analysts plainly believe Schrodinger is more favorable than Butterfly Network.

Volatility and Risk

Schrodinger has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.

Earnings & Valuation

This table compares Schrodinger and Butterfly Network”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrodinger	$255.87 million	3.71	-$103.26 million	($1.42)	-9.06
Butterfly Network	$97.61 million	12.57	-$77.06 million	($0.30)	-16.07

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

Profitability

This table compares Schrodinger and Butterfly Network’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%
Butterfly Network	-73.63%	-34.41%	-23.91%

Summary

Schrodinger beats Butterfly Network on 8 of the 13 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 Butterfly Network

Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.