Schrodinger, Inc. (SDGR) vs Waystar Holding Corp. (WAY)

Schrodinger, Inc. and Waystar Holding Corp. are both Health Information Services companies. Waystar Holding Corp. is the larger, with a market value of $4.7B against $2.2B — 2.1× the size. Schrodinger, Inc. has negative trailing earnings, so its P/E is not meaningful; Waystar Holding Corp. trades at 34.3×. Waystar Holding Corp. grew revenue faster over the last twelve months: 19.2% against 8.88%. Waystar Holding Corp. has the higher net margin (11.2% vs −21.0%) and the higher return on invested capital (3.30% vs 0.00%). Across the 17 metrics below, Waystar Holding Corp. leads on 14 and Schrodinger, Inc. on 3.

Valuation

Metric SDGR WAY Health Information Services median
P/E n/m 34.31 39.52
P/S 8.32 3.93 2.65
P/B 6.55 1.19 2.32
Price to free cash flow n/m 19.24 16.77
EV/EBITDA n/m 13.75 12.35
EV/Sales 6.70 4.96 3.06
Earnings yield (2.56%) 2.91% (1.68%)
Free cash flow yield (6.04%) 5.20% 0.54%

Profitability

Metric SDGR WAY Health Information Services median
Gross margin 56.87% 69.11% 63.38%
Operating margin (59.24%) 22.87% (8.35%)
Net margin (20.98%) 11.18% (14.70%)
Free cash flow margin (50.29%) 20.42% 0.58%
Return on equity (16.18%) 3.77% (6.82%)
Return on assets (8.18%) 2.56% (6.02%)
Return on invested capital 0.00% 3.30% 0.00%

Growth

Metric SDGR WAY Health Information Services median
Revenue growth (TTM) 8.88% 19.23% 8.62%
EPS growth (last fiscal year) 45.14% 569.23% —
Revenue growth, 5-year CAGR 18.81% — 12.36%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric SDGR WAY Health Information Services median
Debt to equity 0.00 0.37 0.01
Current ratio 2.71 1.85 2.37
Net debt to EBITDA 2.50 3.49 0.50

Dividend

Metric SDGR WAY Health Information Services median
Dividend yield — — 0.85%
Payout ratio 0.00 — 0.00

Size

Metric SDGR WAY Health Information Services median
Market cap 2.21b 4.72b 352.86m

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