Critical Contrast: Organon & Co. (NYSE:OGN) & Xeris Biopharma (NASDAQ:XERS)

Xeris Biopharma (NASDAQ:XERS) and Organon & Co. (NYSE:OGN) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Volatility & Risk

Xeris Biopharma has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Organon & Co. has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xeris Biopharma	$335.41 million	6.05	$550,000.00	($0.11)	-101.18
Organon & Co.	$6.22 billion	0.58	$187.00 million	$0.77	17.86

Organon & Co. has higher revenue and earnings than Xeris Biopharma. Xeris Biopharma 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

42.7% of Xeris Biopharma shares are held by institutional investors. Comparatively, 77.4% of Organon & Co. shares are held by institutional investors. 4.3% of Xeris Biopharma 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xeris Biopharma	-5.12%	338.21%	3.50%
Organon & Co.	3.41%	88.97%	6.03%

Analyst Ratings

This is a summary of recent ratings for Xeris Biopharma and Organon & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xeris Biopharma	1	2	4	0	2.43
Organon & Co.	2	5	0	0	1.71

Xeris Biopharma presently has a consensus price target of $13.20, indicating a potential upside of 18.60%. Organon & Co. has a consensus price target of $11.40, indicating a potential downside of 17.12%. Given Xeris Biopharma’s stronger consensus rating and higher probable upside, research analysts clearly believe Xeris Biopharma is more favorable than Organon & Co..

Summary

Organon & Co. beats Xeris Biopharma on 8 of the 14 factors compared between the two stocks.

About Xeris Biopharma

Xeris Biopharma Holdings, Inc., a biopharmaceutical company, engages in developing and commercializing therapies in Illinois. The company offers Gvoke, a ready-to-use liquid-stable glucagon for the treatment of severe hypoglycemia pediatric and adult patients; Keveyis, a therapy for the treatment of hyperkalemic, hypokalemic, and related variants of primary periodic paralysis; and Recorlev, a cortisol synthesis inhibitor proved for the treatment of endogenous hypercortisolemia in adult patients with Cushing's syndrome. It is also developing XP-8121, a once-weekly subcutaneous injection of levothyroxine that is in phase I clinical trial for the treatment of hypothyroidism; and non-aqueous XeriSol and XeriJect technologies for various therapies. The company was incorporated in 2005 and is headquartered in Chicago, Illinois.

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.