Natera (NASDAQ:NTRA) versus Organon & Co. (NYSE:OGN) Financial Analysis

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Natera and Organon & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natera	1	4	14	2	2.81
Organon & Co.	2	5	0	0	1.71

Natera presently has a consensus target price of $256.53, suggesting a potential upside of 13.29%. Organon & Co. has a consensus target price of $11.40, suggesting a potential downside of 15.08%. Given Natera’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Natera is more favorable than Organon & Co..

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Natera	-9.05%	-14.74%	-10.27%
Organon & Co.	3.99%	99.95%	6.22%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natera	$2.31 billion	14.06	-$208.16 million	($1.63)	-138.92
Organon & Co.	$6.22 billion	0.57	$187.00 million	$0.93	14.44

Organon & Co. has higher revenue and earnings than Natera. Natera 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

99.9% of Natera shares are held by institutional investors. Comparatively, 77.4% of Organon & Co. shares are held by institutional investors. 5.1% of Natera shares are held by insiders. Comparatively, 1.6% of Organon & Co. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Natera has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Organon & Co. has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Summary

Natera beats Organon & Co. on 8 of the 15 factors compared between the two stocks.

About Natera

Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.

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.