Financial Contrast: Organon & Co. (NYSE:OGN) vs. GeneDx (NASDAQ:WGS)

GeneDx (NASDAQ:WGS) and Organon & Co. (NYSE:OGN) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Risk and Volatility

GeneDx has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, Organon & Co. has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GeneDx	0.39%	16.51%	9.35%
Organon & Co.	11.92%	227.43%	7.34%

Analyst Ratings

This is a summary of current ratings and target prices for GeneDx and Organon & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeneDx	0	2	6	0	2.75
Organon & Co.	1	2	2	1	2.50

GeneDx currently has a consensus price target of $101.6250, suggesting a potential downside of 6.21%. Organon & Co. has a consensus price target of $18.00, suggesting a potential upside of 85.95%. Given Organon & Co.’s higher possible upside, analysts plainly believe Organon & Co. is more favorable than GeneDx.

Insider and Institutional Ownership

61.7% of GeneDx shares are owned by institutional investors. Comparatively, 77.4% of Organon & Co. shares are owned by institutional investors. 29.6% of GeneDx shares are owned by insiders. Comparatively, 1.4% of Organon & Co. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares GeneDx and Organon & Co.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$362.32 million	8.53	-$52.29 million	$0.05	2,167.00
Organon & Co.	$6.40 billion	0.39	$864.00 million	$2.88	3.36

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

Summary

Organon & Co. beats GeneDx on 8 of the 15 factors compared between the two stocks.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.

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.