Comparing Organigram (NASDAQ:OGI) & AbbVie (NYSE:ABBV)

AbbVie (NYSE:ABBV) and Organigram (NASDAQ:OGI) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares AbbVie and Organigram’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AbbVie	7.59%	296.28%	12.65%
Organigram	-31.69%	-8.59%	-6.54%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AbbVie	$56.33 billion	6.36	$4.28 billion	$2.40	84.62
Organigram	$166.12 million	0.88	-$33.39 million	($0.38)	-3.05

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

Analyst Ratings

This is a summary of current recommendations for AbbVie and Organigram, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AbbVie	0	5	17	2	2.88
Organigram	0	0	2	0	3.00

AbbVie presently has a consensus target price of $208.35, suggesting a potential upside of 2.59%. Given AbbVie’s higher possible upside, research analysts clearly believe AbbVie is more favorable than Organigram.

Volatility and Risk

AbbVie has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Organigram has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Institutional and Insider Ownership

70.2% of AbbVie shares are owned by institutional investors. Comparatively, 34.6% of Organigram shares are owned by institutional investors. 0.3% of AbbVie shares are owned by company insiders. Comparatively, 0.1% of Organigram shares are owned 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.

Summary

AbbVie beats Organigram on 13 of the 15 factors compared between the two stocks.

About AbbVie

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers Humira, an injection for autoimmune and intestinal Behçet's diseases, and pyoderma gangrenosum; Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn's disease; Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn's disease; Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma; Elahere to treat cancer; and Venclexta/Venclyxto to treat blood cancers. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox therapeutic; Vraylar for depressive disorder; Duopa and Duodopa to treat advanced Parkinson's disease; Ubrelvy for the acute treatment of migraine in adults; and Qulipta for episodic and chronic migraine. In addition, the company offers Ozurdex for eye diseases; Lumigan/Ganfort and Alphagan/Combigan for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; Restasis to increase tear production; and other eye care products. Further, it provides Mavyret/Maviret to treat chronic hepatitis C virus genotype 1-6 infection; Creon, a pancreatic enzyme therapy; Lupron to treat advanced prostate cancer, endometriosis and central precocious puberty, and patients with anemia caused by uterine fibroids; Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation; and Synthroid for hypothyroidism. It has collaborations with Calico Life Sciences LLC; REGENXBIO Inc.; Janssen Biotech, Inc.; and Genentech, Inc., as well as collaboration with Tentarix Biotherapeutics, LP to develop conditionally-active and multi-specific biologics for oncology and immunology. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.

About Organigram

Organigram Holdings Inc., through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers; adult use recreational cannabis under the SHRED, Holy Mountain, Big Bag O' Buds, Monjour, Trailblazer, SHRED'ems, Edison Cannabis Co., Edison JOLTS, Tremblant, and Laurentian brands. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative-based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as consumer channels. The company was incorporated in 2010 and is headquartered in Toronto, Canada.