Bausch Health Companies (NYSE:BHC) and Organogenesis (NASDAQ:ORGO) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Insider & Institutional Ownership
62.9% of Bausch Health Companies shares are held by institutional investors. Comparatively, 4.6% of Organogenesis shares are held by institutional investors. 12.1% of Bausch Health Companies shares are held by company insiders. Comparatively, 57.2% of Organogenesis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Bausch Health Companies and Organogenesis' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Bausch Health Companies | -23.92% | 173.20% | 4.21% |
| Organogenesis | -1.61% | -10.03% | -2.22% |
Risk and Volatility
Bausch Health Companies has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Organogenesis has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.
Earnings and Valuation
This table compares Bausch Health Companies and Organogenesis' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Bausch Health Companies | $8.60 billion | 1.24 | $-1,788,000,000.00 | $4.43 | 6.77 |
| Organogenesis | $260.98 million | 10.52 | $-40,450,000.00 | ($0.42) | -51.10 |
Organogenesis has lower revenue, but higher earnings than Bausch Health Companies. Organogenesis is trading at a lower price-to-earnings ratio than Bausch Health Companies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Bausch Health Companies and Organogenesis, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Bausch Health Companies | 1 | 4 | 7 | 0 | 2.50 |
| Organogenesis | 0 | 0 | 4 | 0 | 3.00 |
Bausch Health Companies presently has a consensus target price of $32.5833, indicating a potential upside of 8.68%. Organogenesis has a consensus target price of $16.50, indicating a potential downside of 23.11%. Given Bausch Health Companies' higher probable upside, equities research analysts plainly believe Bausch Health Companies is more favorable than Organogenesis.
Summary
Bausch Health Companies beats Organogenesis on 8 of the 14 factors compared between the two stocks.
