Critical Contrast: Schrödinger (NASDAQ:SDGR) vs. Organigram (NASDAQ:OGI)

Schrödinger (NASDAQ:SDGR) and Organigram (NASDAQ:OGI) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Insider and Institutional Ownership

79.1% of Schrödinger shares are held by institutional investors. Comparatively, 34.6% of Organigram shares are held by institutional investors. 8.6% of Schrödinger shares are held by insiders. Comparatively, 0.1% of Organigram shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Schrödinger and Organigram”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrödinger	$200.63 million	6.45	$40.72 million	($1.88)	-9.47
Organigram	$161.08 million	1.12	-$184.34 million	($0.94)	-1.85

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Schrödinger and Organigram, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrödinger	0	3	6	1	2.80
Organigram	0	0	2	0	3.00

Schrödinger presently has a consensus target price of $33.44, suggesting a potential upside of 87.78%. Given Schrödinger’s higher possible upside, analysts plainly believe Schrödinger is more favorable than Organigram.

Risk & Volatility

Schrödinger has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Organigram has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Schrödinger and Organigram’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schrödinger	-100.42%	-38.38%	-26.66%
Organigram	-45.57%	-16.76%	-14.32%

Summary

Schrödinger beats Organigram on 9 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 Organigram

Organigram Holdings Inc., through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers; adult use recreational cannabis under the SHRED, Holy Mountain, Big Bag O' Buds, Monjour, Trailblazer, SHRED'ems, Edison Cannabis Co., Edison JOLTS, Tremblant, and Laurentian brands. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative-based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as consumer channels. The company was incorporated in 2010 and is headquartered in Toronto, Canada.