Head-To-Head Comparison: Organon & Co. (NYSE:OGN) and CareDx (NASDAQ:CDNA)

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

Volatility & Risk

CareDx has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500. Comparatively, Organon & Co. has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

77.4% of Organon & Co. shares are owned by institutional investors. 4.4% of CareDx shares are owned by insiders. Comparatively, 1.4% of Organon & Co. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares CareDx and Organon & Co.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareDx	$333.79 million	3.20	$52.55 million	$1.19	17.48
Organon & Co.	$6.40 billion	0.37	$864.00 million	$1.92	4.74

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareDx	19.65%	20.15%	15.15%
Organon & Co.	7.95%	143.47%	7.14%

Analyst Recommendations

This is a summary of recent ratings for CareDx and Organon & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareDx	0	6	3	0	2.33
Organon & Co.	4	1	0	1	1.67

CareDx currently has a consensus target price of $26.67, suggesting a potential upside of 28.21%. Organon & Co. has a consensus target price of $8.38, suggesting a potential downside of 7.97%. Given CareDx’s stronger consensus rating and higher probable upside, analysts clearly believe CareDx is more favorable than Organon & Co..

Summary

CareDx beats Organon & Co. on 9 of the 15 factors compared between the two stocks.

About CareDx

CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.

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.