Organogenesis (NASDAQ:ORGO) versus Heron Therapeutics (NASDAQ:HRTX) Head-To-Head Survey

Organogenesis (NASDAQ:ORGO) and Heron Therapeutics (NASDAQ:HRTX) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Volatility and Risk

Organogenesis has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Heron Therapeutics has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Institutional and Insider Ownership

49.6% of Organogenesis shares are held by institutional investors. Comparatively, 80.0% of Heron Therapeutics shares are held by institutional investors. 18.8% of Organogenesis shares are held by insiders. Comparatively, 6.1% of Heron Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Organogenesis and Heron Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organogenesis	$564.17 million	0.55	$37.03 million	($0.19)	-12.63
Heron Therapeutics	$154.90 million	0.47	-$20.19 million	($0.18)	-2.12

Organogenesis has higher revenue and earnings than Heron Therapeutics. Organogenesis is trading at a lower price-to-earnings ratio than Heron Therapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Organogenesis and Heron Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organogenesis	-0.84%	9.63%	4.76%
Heron Therapeutics	-20.53%	-7,747.30%	-8.94%

Analyst Ratings

This is a summary of recent recommendations and price targets for Organogenesis and Heron Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organogenesis	1	2	1	0	2.00
Heron Therapeutics	2	1	2	0	2.00

Organogenesis presently has a consensus target price of $5.75, suggesting a potential upside of 139.58%. Heron Therapeutics has a consensus target price of $2.50, suggesting a potential upside of 554.45%. Given Heron Therapeutics’ higher possible upside, analysts plainly believe Heron Therapeutics is more favorable than Organogenesis.

Summary

Organogenesis beats Heron Therapeutics on 7 of the 13 factors compared between the two stocks.

About Organogenesis

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.

About Heron Therapeutics

Heron Therapeutics, Inc., a commercial-stage biotechnology company, focuses on enhancing the lives of patients by developing and commercializing therapeutic that enhances medical care. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy. The company is also developing ZYNRELEF, a dual-acting local anesthetic that delivers a fixed-dose combination of the local anesthetic bupivacaine and a low dose of the nonsteroidal anti-inflammatory drug meloxicam; and APONVIE, an intravenous formulation of a substance P/neurokinin-1 receptor antagonist indicated for the prevention of postoperative nausea and vomiting in adults. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in San Diego, California.