Analyzing CareDx (NASDAQ:CDNA) and Organon & Co. (NYSE:OGN)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organon & Co.	$6.30 billion	0.40	$864.00 million	$1.92	5.09
CareDx	$333.79 million	3.15	$52.55 million	$1.19	17.16

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Organon & Co. and CareDx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	4	1	0	1	1.67
CareDx	0	6	3	0	2.33

Organon & Co. presently has a consensus price target of $8.38, suggesting a potential downside of 14.32%. CareDx has a consensus price target of $26.67, suggesting a potential upside of 30.59%. Given CareDx’s stronger consensus rating and higher possible upside, analysts plainly believe CareDx is more favorable than Organon & Co..

Risk and Volatility

Organon & Co. has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, CareDx has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Institutional & Insider Ownership

77.4% of Organon & Co. shares are held by institutional investors. 2.0% of Organon & Co. shares are held by company insiders. Comparatively, 4.4% of CareDx shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Organon & Co. and CareDx’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%
CareDx	19.65%	20.15%	15.15%

Summary

CareDx beats Organon & Co. 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 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.