CareDx (NASDAQ:CDNA) versus Organogenesis (NASDAQ:ORGO) Financial Analysis

Organogenesis (NASDAQ:ORGO) and CareDx (NASDAQ:CDNA) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Risk & Volatility

Organogenesis has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, CareDx has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500.

Valuation & Earnings

This table compares Organogenesis and CareDx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organogenesis	$564.17 million	0.39	$37.03 million	($0.86)	-1.99
CareDx	$379.80 million	6.93	-$21.35 million	$2.07	24.59

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

Institutional and Insider Ownership

49.6% of Organogenesis shares are held by institutional investors. 18.8% of Organogenesis shares are held by company insiders. Comparatively, 2.4% of CareDx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Organogenesis and CareDx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organogenesis	-19.94%	-23.89%	-11.13%
CareDx	24.23%	2.87%	2.17%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Organogenesis and CareDx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organogenesis	1	2	0	0	1.67
CareDx	0	4	3	1	2.62

Organogenesis currently has a consensus price target of $4.33, indicating a potential upside of 153.41%. CareDx has a consensus price target of $51.20, indicating a potential upside of 0.61%. Given Organogenesis’ higher probable upside, research analysts clearly believe Organogenesis is more favorable than CareDx.

Summary

CareDx beats Organogenesis on 10 of the 15 factors compared between the two stocks.

About Organogenesis

Organogenesis Holdings Inc., a regenerative medicine company, develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States. The company's advanced wound care products include Affinity, an amniotic membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Novachor, a chorion membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, cytokines, and growth factors; NuShield, dehydrated placental tissue covering amnion and chorion membranes for spongy/intermediate layer intact; and PuraPly AM, an antimicrobial barrier that enables conformability and fluid drainage. Its products also include FortiShield, a biosynthetic wound matrix for use as a temporary protective covering; PuraPly MZ, a micronized particulate version of PuraPly for the management of open wounds in the surgical setting; and CYGNUS Dual, a dehydrated placental tissue preserved to retain the ECM scaffold. The company's pipeline products include ReNu, a cryopreserved suspension used to support healing of soft tissues; PuraForce, a bioengineered porcine collagen surgical matrix for use in soft tissue reinforcement applications; and TransCyte, a bioengineered tissue for the treatment of partial thickness burns. It serves hospitals, wound care centers, government facilities, ambulatory service centers, and physician office through direct sales representives and independent agencies. Organogenesis Holdings Inc. was founded in 1985 and is headquartered in Canton, Massachusetts.

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.