Critical Review: Ardent Health (NYSE:ARDT) vs. Organon & Co. (NYSE:OGN)

Ardent Health (NYSE:ARDT) and Organon & Co. (NYSE:OGN) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Ardent Health and Organon & Co.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ardent Health	$5.97 billion	0.22	$210.34 million	$1.45	6.24
Organon & Co.	$6.40 billion	0.33	$864.00 million	$1.92	4.27

Organon & Co. has higher revenue and earnings than Ardent Health. Organon & Co. is trading at a lower price-to-earnings ratio than Ardent Health, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ardent Health and Organon & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ardent Health	2	4	6	0	2.33
Organon & Co.	4	2	0	1	1.71

Ardent Health presently has a consensus target price of $14.67, suggesting a potential upside of 62.15%. Organon & Co. has a consensus target price of $8.38, suggesting a potential upside of 2.20%. Given Ardent Health’s stronger consensus rating and higher possible upside, research analysts clearly believe Ardent Health is more favorable than Organon & Co..

Institutional and Insider Ownership

77.4% of Organon & Co. shares are owned by institutional investors. 1.7% of Ardent Health shares are owned by insiders. Comparatively, 2.0% of Organon & Co. shares are owned by 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.

Risk & Volatility

Ardent Health has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Organon & Co. has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Ardent Health and Organon & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ardent Health	3.24%	19.02%	6.04%
Organon & Co.	7.95%	143.47%	7.14%

Summary

Organon & Co. beats Ardent Health on 10 of the 15 factors compared between the two stocks.

About Ardent Health

Ardent Health Partners, Inc. owns and operates a network of hospitals and clinics that provides a range of healthcare services in the United States. It operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. The company was founded in 2001 and is based in Brentwood, Tennessee. Ardent Health Partners, Inc. is a subsidiary of EGI-AM Investments, L.L.C.

About Organon & Co.

Organon & Co. is a science based global pharmaceutical company, which develops and delivers innovative health solutions through a portfolio of prescription therapies within women’s health, biosimilars and established brands. The company was founded on March 11, 2020, and is headquartered in Jersey City, NJ.