Financial Review: Organogenesis (ORGO) and The Competition

Organogenesis (NASDAQ:ORGO) is one of 844 publicly-traded companies in the “Biotechnology” industry, but how does it compare to its rivals? We will compare Organogenesis to related businesses based on the strength of its valuation, institutional ownership, profitability, risk, dividends, analyst recommendations and earnings.

Institutional and Insider Ownership

49.6% of Organogenesis shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Biotechnology” companies are owned by institutional investors. 18.8% of Organogenesis shares are owned by company insiders. Comparatively, 13.1% of shares of all “Biotechnology” companies are owned 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 Organogenesis and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organogenesis	-19.94%	-23.89%	-11.13%
Organogenesis Competitors	-12,359.35%	-203.09%	-30.93%

Analyst Ratings

This is a summary of recent ratings and target prices for Organogenesis and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organogenesis	1	2	0	0	1.67
Organogenesis Competitors	9801	15090	45424	1579	2.54

Organogenesis presently has a consensus target price of $4.33, suggesting a potential upside of 432.87%. As a group, “Biotechnology” companies have a potential upside of 100.43%. Given Organogenesis’ higher possible upside, research analysts clearly believe Organogenesis is more favorable than its rivals.

Earnings and Valuation

This table compares Organogenesis and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Organogenesis	$564.17 million	$37.03 million	-0.95
Organogenesis Competitors	$735.95 million	$13.62 million	-15.01

Organogenesis’ rivals have higher revenue, but lower earnings than Organogenesis. Organogenesis is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Organogenesis has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Organogenesis’ rivals have a beta of 1.15, indicating that their average share price is 15% more volatile than the S&P 500.

Summary

Organogenesis beats its rivals on 9 of the 13 factors compared.

Organogenesis Company Profile

Organogenesis Holdings Inc., a regenerative medicine company, develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States. The company's advanced wound care products include Affinity, an amniotic membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Novachor, a chorion membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, cytokines, and growth factors; NuShield, dehydrated placental tissue covering amnion and chorion membranes for spongy/intermediate layer intact; and PuraPly AM, an antimicrobial barrier that enables conformability and fluid drainage. Its products also include FortiShield, a biosynthetic wound matrix for use as a temporary protective covering; PuraPly MZ, a micronized particulate version of PuraPly for the management of open wounds in the surgical setting; and CYGNUS Dual, a dehydrated placental tissue preserved to retain the ECM scaffold. The company's pipeline products include ReNu, a cryopreserved suspension used to support healing of soft tissues; PuraForce, a bioengineered porcine collagen surgical matrix for use in soft tissue reinforcement applications; and TransCyte, a bioengineered tissue for the treatment of partial thickness burns. It serves hospitals, wound care centers, government facilities, ambulatory service centers, and physician office through direct sales representives and independent agencies. Organogenesis Holdings Inc. was founded in 1985 and is headquartered in Canton, Massachusetts.