Head to Head Comparison: GSK (NYSE:GSK) versus Organon & Co. (NYSE:OGN)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Organon & Co. and GSK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	2	5	0	0	1.71
GSK	3	13	3	0	2.00

Organon & Co. presently has a consensus target price of $11.40, indicating a potential downside of 17.42%. GSK has a consensus target price of $56.30, indicating a potential upside of 15.79%. Given GSK’s stronger consensus rating and higher possible upside, analysts plainly believe GSK is more favorable than Organon & Co..

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organon & Co.	3.41%	88.97%	6.03%
GSK	13.00%	42.41%	11.55%

Dividends

Organon & Co. pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. GSK pays an annual dividend of $1.77 per share and has a dividend yield of 3.6%. Organon & Co. pays out 10.4% of its earnings in the form of a dividend. GSK pays out 61.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Organon & Co. has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, GSK has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organon & Co.	$6.22 billion	0.58	$187.00 million	$0.77	17.93
GSK	$33.54 billion	2.93	$7.54 billion	$2.88	16.88

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

Institutional and Insider Ownership

77.4% of Organon & Co. shares are owned by institutional investors. Comparatively, 15.7% of GSK shares are owned by institutional investors. 1.6% of Organon & Co. shares are owned by company insiders. Comparatively, 10.0% of GSK shares are owned 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.

Summary

GSK beats Organon & Co. on 11 of the 16 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 GSK

GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates through two segments, Commercial Operations and Total R&D. The company offers shingles, meningitis, respiratory syncytial virus, flu, polio, influenza, and pandemic vaccines. It also provides medicines for HIV, oncology, respiratory/immunology, and other specialty medicine products, as well as inhaled medicines for asthma and chronic obstructive pulmonary disease, and antibiotics for infections. It has a collaboration agreement with CureVac to develop mRNA-based influenza vaccines, and with Wave Life Sciences and Elsie Biotechnologies, Inc for oligonucleotide platform development. The company was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022. GSK plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.