Organon & Co. (NYSE:OGN) vs. Natera (NASDAQ:NTRA) Financial Survey

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

Institutional & Insider Ownership

77.4% of Organon & Co. shares are owned by institutional investors. Comparatively, 99.9% of Natera shares are owned by institutional investors. 1.6% of Organon & Co. shares are owned by company insiders. Comparatively, 5.1% of Natera shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organon & Co.	3.99%	99.95%	6.22%
Natera	-9.05%	-14.74%	-10.27%

Analyst Recommendations

This is a summary of current ratings and target prices for Organon & Co. and Natera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	2	5	0	0	1.71
Natera	1	4	14	2	2.81

Organon & Co. currently has a consensus price target of $11.40, suggesting a potential downside of 15.27%. Natera has a consensus price target of $256.53, suggesting a potential upside of 20.96%. Given Natera’s stronger consensus rating and higher possible upside, analysts plainly believe Natera is more favorable than Organon & Co..

Risk & Volatility

Organon & Co. has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Natera has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Valuation & Earnings

This table compares Organon & Co. and Natera”s gross 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	0.57	$187.00 million	$0.93	14.47
Natera	$2.31 billion	13.17	-$208.16 million	($1.63)	-130.10

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

Summary

Natera beats Organon & Co. on 8 of the 15 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 Natera

Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.