Organon & Co. (NYSE:OGN – Get Free Report) and Labcorp (NYSE:LH – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Risk & Volatility
Organon & Co. has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Labcorp has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Dividends
Organon & Co. pays an annual dividend of $0.08 per share and has a dividend yield of 1.2%. Labcorp pays an annual dividend of $2.88 per share and has a dividend yield of 1.1%. Organon & Co. pays out 11.3% of its earnings in the form of a dividend. Labcorp pays out 27.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Organon & Co. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Organon & Co. | 5 | 1 | 0 | 1 | 1.57 |
| Labcorp | 0 | 3 | 9 | 0 | 2.75 |
Organon & Co. presently has a consensus price target of $8.50, suggesting a potential upside of 29.18%. Labcorp has a consensus price target of $304.82, suggesting a potential upside of 12.82%. Given Organon & Co.’s higher possible upside, analysts clearly believe Organon & Co. is more favorable than Labcorp.
Valuation & Earnings
This table compares Organon & Co. and Labcorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Organon & Co. | $6.22 billion | 0.28 | $187.00 million | $0.71 | 9.27 |
| Labcorp | $13.95 billion | 1.60 | $876.50 million | $10.46 | 25.83 |
Labcorp has higher revenue and earnings than Organon & Co.. Organon & Co. is trading at a lower price-to-earnings ratio than Labcorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
77.4% of Organon & Co. shares are held by institutional investors. Comparatively, 95.9% of Labcorp shares are held by institutional investors. 2.0% of Organon & Co. shares are held by insiders. Comparatively, 0.8% of Labcorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Organon & Co. and Labcorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Organon & Co. | 3.01% | 122.01% | 6.74% |
| Labcorp | 6.28% | 16.16% | 7.62% |
Summary
Labcorp beats Organon & Co. on 11 of the 17 factors compared between the two stocks.
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.
About Labcorp
Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.
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