Head to Head Comparison: Schrödinger (NASDAQ:SDGR) & Mersana Therapeutics (NASDAQ:MRSN)

Schrödinger (NASDAQ:SDGRGet Rating) and Mersana Therapeutics (NASDAQ:MRSNGet Rating) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares Schrödinger and Mersana Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schrödinger -87.27% -23.72% -18.24%
Mersana Therapeutics -8,826.73% -119.10% -78.07%

Earnings and Valuation

This table compares Schrödinger and Mersana Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schrödinger $137.93 million 13.65 -$100.39 million ($1.89) -14.02
Mersana Therapeutics $40,000.00 8,074.50 -$170.06 million ($2.49) -1.34

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

Insider and Institutional Ownership

62.3% of Schrödinger shares are owned by institutional investors. Comparatively, 92.7% of Mersana Therapeutics shares are owned by institutional investors. 5.0% of Schrödinger shares are owned by company insiders. Comparatively, 5.3% of Mersana Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Schrödinger has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Mersana Therapeutics has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Schrödinger and Mersana Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schrödinger 0 2 4 0 2.67
Mersana Therapeutics 0 0 4 0 3.00

Schrödinger presently has a consensus target price of $68.50, suggesting a potential upside of 158.49%. Mersana Therapeutics has a consensus target price of $21.25, suggesting a potential upside of 538.14%. Given Mersana Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Mersana Therapeutics is more favorable than Schrödinger.

Summary

Mersana Therapeutics beats Schrödinger on 7 of the 13 factors compared between the two stocks.

Schrödinger Company Profile (Get Rating)

Schrödinger, Inc., together with its subsidiaries, provides physics-based software 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 selling its software for drug discovery in the life sciences industry, as well as to customers in 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.

Mersana Therapeutics Company Profile (Get Rating)

Mersana Therapeutics, Inc., a clinical stage biopharmaceutical company, develops antibody drug conjugates (ADC) for cancer patients with unmet need. It develops XMT-1592, a Dolasynthen ADC targeting NaPi2b-expressing tumor cells, which is in phase I clinical trial for the treatment of ovarian cancer and NSCLC adenocarcinoma. The company also develops XMT-1660, a B7-H4-targeted Dolasynthen ADC candidate; and XMT-2056, an immunosynthen development candidate. It has a strategic research and development partnerships with Merck KGaA and Asana BioSciences, LLC for the development of ADC product candidates utilizing Fleximer. The company was formerly known as Nanopharma Corp. and changed its name to Mersana Therapeutics, Inc. in November 2005. Mersana Therapeutics, Inc. was incorporated in 2001 and is headquartered in Cambridge, Massachusetts.

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