Head-To-Head Review: Ardent Health (NYSE:ARDT) vs. Organon & Co. (NYSE:OGN)

Organon & Co. (NYSE:OGN) and Ardent Health (NYSE:ARDT) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Institutional and Insider Ownership

77.4% of Organon & Co. shares are held by institutional investors. 1.4% of Organon & Co. shares are held by company insiders. Comparatively, 1.7% of Ardent Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Organon & Co. has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Ardent Health has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Organon & Co. and Ardent Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	4	2	0	1	1.71
Ardent Health	2	4	6	0	2.33

Organon & Co. presently has a consensus price target of $8.38, suggesting a potential upside of 12.84%. Ardent Health has a consensus price target of $14.67, suggesting a potential upside of 64.24%. Given Ardent Health’s stronger consensus rating and higher possible upside, analysts clearly believe Ardent Health is more favorable than Organon & Co..

Earnings and Valuation

This table compares Organon & Co. and Ardent Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organon & Co.	$6.40 billion	0.30	$864.00 million	$1.92	3.87
Ardent Health	$5.97 billion	0.21	$210.34 million	$1.45	6.16

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organon & Co.	7.95%	143.47%	7.14%
Ardent Health	3.24%	19.02%	6.04%

Summary

Organon & Co. beats Ardent Health on 9 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 Ardent Health

Ardent Health Partners, Inc. owns and operates a network of hospitals and clinics that provides a range of healthcare services in the United States. It operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. The company was founded in 2001 and is based in Brentwood, Tennessee. Ardent Health Partners, Inc. is a subsidiary of EGI-AM Investments, L.L.C.