SDGR vs RLAY

For growth investors, Relay Therapeutics, Inc.

(RLAY) is the stronger pick with 53. 4% revenue growth year-over-year, versus 23. 3% for Schrödinger, Inc. (SDGR). Analysts rate Schrödinger, Inc. (SDGR) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Relay Therapeutics, Inc.

(RLAY) delivered a total return of -55. 7%, compared to -80. 7% for Schrödinger, Inc. (SDGR). Over 10 years, the gap is even starker: SDGR returned -54. 7% versus RLAY's -63. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Schrödinger, Inc.

(SDGR) is the lower-risk stock at 1. 72β versus Relay Therapeutics, Inc. 's 1. 77β — meaning RLAY is approximately 3% more volatile than SDGR relative to the S&P 500. On balance sheet safety, Relay Therapeutics, Inc. (RLAY) carries a lower debt/equity ratio of 6% versus 30% for Schrödinger, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Relay Therapeutics, Inc.

(RLAY) is pulling ahead at 53. 4% versus 23. 3% for Schrödinger, Inc. (SDGR). On earnings-per-share growth, the picture is similar: Schrödinger, Inc. grew EPS 45. 1% year-over-year, compared to 31. 8% for Relay Therapeutics, Inc.. Over a 3-year CAGR, RLAY leads at 123. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Schrödinger, Inc.

(SDGR) is the more profitable company, earning -40. 4% net margin versus -1800. 6% for Relay Therapeutics, Inc. — meaning it keeps -40. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SDGR leads at -65. 2% versus -1971. 6% for RLAY. At the gross margin level — before operating expenses — RLAY leads at 76. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Schrödinger, Inc.

(SDGR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Relay Therapeutics, Inc. (RLAY) carries a higher beta of 1. 77 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SDGR: -54. 7%, RLAY: -63. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.