Schrödinger (NASDAQ:SDGR – Get Free Report) and CervoMed (NASDAQ:CRVO – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Insider & Institutional Ownership
79.1% of Schrödinger shares are held by institutional investors. Comparatively, 25.1% of CervoMed shares are held by institutional investors. 8.6% of Schrödinger shares are held by insiders. Comparatively, 36.3% of CervoMed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for Schrödinger and CervoMed, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schrödinger | 0 | 1 | 4 | 1 | 3.00 |
| CervoMed | 1 | 1 | 5 | 2 | 2.89 |
Risk & Volatility
Schrödinger has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, CervoMed has a beta of -0.23, indicating that its share price is 123% less volatile than the S&P 500.
Valuation & Earnings
This table compares Schrödinger and CervoMed”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Schrödinger | $207.54 million | 8.29 | $40.72 million | ($2.57) | -9.17 |
| CervoMed | $7.14 million | 11.51 | -$2.17 million | ($2.03) | -4.65 |
Schrödinger has higher revenue and earnings than CervoMed. Schrödinger is trading at a lower price-to-earnings ratio than CervoMed, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Schrödinger and CervoMed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Schrödinger | -91.84% | -35.77% | -24.51% |
| CervoMed | -118.68% | -44.11% | -39.81% |
Summary
Schrödinger beats CervoMed on 8 of the 15 factors compared between the two stocks.
About Schrödinger
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 CervoMed
CervoMed Inc., a biotechnology company, engages in the development and commercialization of treatments for age-related neurologic disorders. Its lead drug candidate is neflamapimod, an orally administered small molecule brain penetrant for the treatment of dementia with Lewy bodies (DLB), Alzheimer's diseases, frontotemporal dementia, and ischemic stroke recovery. The company also develops EIP200 for central nervous system which is in preclinical trials. CervoMed Inc. was founded in 2010 and is headquartered in Boston, Massachusetts.
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