Analyzing Schrödinger (NASDAQ:SDGR) and Emmaus Life Sciences (OTCMKTS:EMMA)

Schrödinger (NASDAQ:SDGR) and Emmaus Life Sciences (OTCMKTS:EMMA) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Schrödinger and Emmaus Life Sciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schrödinger	0	3	6	1	2.80
Emmaus Life Sciences	0	0	0	0	N/A

Schrödinger presently has a consensus target price of $33.44, indicating a potential upside of 64.35%. Given Schrödinger’s higher probable upside, equities analysts plainly believe Schrödinger is more favorable than Emmaus Life Sciences.

Valuation and Earnings

This table compares Schrödinger and Emmaus Life Sciences’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schrödinger	$200.63 million	7.37	$40.72 million	($1.88)	-10.82
Emmaus Life Sciences	$29.60 million	0.00	-$3.73 million	($0.09)	-0.01

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

Volatility & Risk

Schrödinger has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Emmaus Life Sciences has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Institutional & Insider Ownership

79.1% of Schrödinger shares are held by institutional investors. Comparatively, 7.4% of Emmaus Life Sciences shares are held by institutional investors. 8.6% of Schrödinger shares are held by company insiders. Comparatively, 35.0% of Emmaus Life Sciences shares are held by company 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.

Profitability

This table compares Schrödinger and Emmaus Life Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schrödinger	-100.42%	-38.38%	-26.66%
Emmaus Life Sciences	-12.61%	N/A	-7.63%

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 Emmaus Life Sciences

Emmaus Life Sciences, Inc., a commercial-stage biopharmaceutical company, discovers, develops, markets, and sells treatments and therapies primarily for rare and orphan diseases in the United States and internationally. The company's lead candidate is Endari, an L-glutamine oral powder to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older. It has a collaboration agreement with Kainos Medicine, Inc. for the preclinical development of Kainos' patented IRAK4 inhibitor (KM10544) as an anti-cancer drug. The company was formerly known as Emmaus Holdings, Inc. and changed its name to Emmaus Life Sciences, Inc. in September 2011. The company was founded in 2000 and is headquartered in Torrance, California.