Financial Contrast: Avantor (NYSE:AVTR) and Organon & Co. (NYSE:OGN)

Organon & Co. (NYSE:OGN) and Avantor (NYSE:AVTR) are both mid-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Organon & Co. and Avantor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	2	5	0	0	1.71
Avantor	1	15	2	0	2.06

Organon & Co. presently has a consensus target price of $11.40, suggesting a potential downside of 15.90%. Avantor has a consensus target price of $12.00, suggesting a potential downside of 12.94%. Given Avantor’s stronger consensus rating and higher probable upside, analysts clearly believe Avantor is more favorable than Organon & Co..

Valuation & Earnings

This table compares Organon & Co. and Avantor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organon & Co.	$6.22 billion	0.57	$187.00 million	$0.93	14.58
Avantor	$6.56 billion	1.42	-$530.20 million	($0.84)	-16.41

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

Insider & Institutional Ownership

77.4% of Organon & Co. shares are owned by institutional investors. Comparatively, 95.1% of Avantor shares are owned by institutional investors. 1.6% of Organon & Co. shares are owned by insiders. Comparatively, 0.3% of Avantor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organon & Co.	3.41%	92.94%	6.04%
Avantor	-8.81%	9.92%	4.75%

Risk & Volatility

Organon & Co. has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Avantor has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Summary

Organon & Co. beats Avantor on 8 of the 14 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 Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.