Analyzing Organon & Co. (NYSE:OGN) & Ardent Health (NYSE:ARDT)

Organon & Co. (NYSE:OGN) and Ardent Health (NYSE:ARDT) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares Organon & Co. and Ardent Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organon & Co.	$6.30 billion	0.30	$864.00 million	$1.92	3.77
Ardent Health	$5.97 billion	0.21	$210.34 million	$1.45	5.96

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

Institutional & Insider Ownership

77.4% of Organon & Co. shares are held by institutional investors. 2.0% of Organon & Co. shares are held by insiders. Comparatively, 1.7% of Ardent Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organon & Co.	7.95%	143.47%	7.14%
Ardent Health	3.24%	19.02%	6.04%

Volatility & Risk

Organon & Co. has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Ardent Health has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Organon & Co. and Ardent Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	4	2	0	1	1.71
Ardent Health	2	4	6	0	2.33

Organon & Co. currently has a consensus price target of $8.38, suggesting a potential upside of 15.60%. Ardent Health has a consensus price target of $14.67, suggesting a potential upside of 69.67%. Given Ardent Health’s stronger consensus rating and higher probable upside, analysts clearly believe Ardent Health is more favorable than Organon & Co..

Summary

Organon & Co. beats Ardent Health on 10 of the 15 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 Ardent Health

Ardent Health Partners, Inc. owns and operates a network of hospitals and clinics that provides a range of healthcare services in the United States. It operates acute care hospitals, including rehabilitation hospitals and surgical hospitals. The company was founded in 2001 and is based in Brentwood, Tennessee. Ardent Health Partners, Inc. is a subsidiary of EGI-AM Investments, L.L.C.