Reviewing Charles River Laboratories International (NYSE:CRL) and Organon & Co. (NYSE:OGN)

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

Profitability

This table compares Charles River Laboratories International and Organon & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles River Laboratories International	-0.66%	15.19%	6.93%
Organon & Co.	11.92%	227.43%	7.34%

Valuation & Earnings

This table compares Charles River Laboratories International 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
Charles River Laboratories International	$4.05 billion	2.14	$22.20 million	($0.65)	-271.32
Organon & Co.	$6.40 billion	0.41	$864.00 million	$2.88	3.49

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

Institutional and Insider Ownership

98.9% of Charles River Laboratories International shares are owned by institutional investors. Comparatively, 77.4% of Organon & Co. shares are owned by institutional investors. 1.3% of Charles River Laboratories International shares are owned by company insiders. Comparatively, 2.0% of Organon & Co. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Charles River Laboratories International and Organon & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles River Laboratories International	1	10	5	0	2.25
Organon & Co.	1	2	2	1	2.50

Charles River Laboratories International currently has a consensus target price of $174.54, indicating a potential downside of 1.03%. Organon & Co. has a consensus target price of $18.00, indicating a potential upside of 78.93%. Given Organon & Co.’s stronger consensus rating and higher probable upside, analysts clearly believe Organon & Co. is more favorable than Charles River Laboratories International.

Volatility & Risk

Charles River Laboratories International has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Organon & Co. has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Summary

Organon & Co. beats Charles River Laboratories International on 11 of the 15 factors compared between the two stocks.

About Charles River Laboratories International

Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies. It also provides contract vivarium operation services to biopharmaceutical clients. The company was founded in 1947 and is headquartered in Wilmington, Massachusetts.

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.