Analyzing Sage Therapeutics (NASDAQ:SAGE) and Orgenesis (NASDAQ:ORGS)

Sage Therapeutics (NASDAQ:SAGE) and Orgenesis (NASDAQ:ORGS) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Institutional and Insider Ownership

99.2% of Sage Therapeutics shares are owned by institutional investors. Comparatively, 22.6% of Orgenesis shares are owned by institutional investors. 5.5% of Sage Therapeutics shares are owned by company insiders. Comparatively, 5.7% of Orgenesis shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Sage Therapeutics and Orgenesis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sage Therapeutics	-971.50%	-68.18%	-60.84%
Orgenesis	-3,827.81%	N/A	-130.18%

Valuation & Earnings

This table compares Sage Therapeutics and Orgenesis”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sage Therapeutics	$47.40 million	8.85	-$400.67 million	($5.80)	-1.16
Orgenesis	$662,000.00	14.14	-$55.36 million	N/A	N/A

Orgenesis has lower revenue, but higher earnings than Sage Therapeutics.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sage Therapeutics and Orgenesis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sage Therapeutics	1	14	2	0	2.06
Orgenesis	0	0	0	0	0.00

Sage Therapeutics currently has a consensus price target of $8.87, indicating a potential upside of 32.34%. Given Sage Therapeutics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Sage Therapeutics is more favorable than Orgenesis.

Volatility and Risk

Sage Therapeutics has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Orgenesis has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Summary

Sage Therapeutics beats Orgenesis on 7 of the 12 factors compared between the two stocks.

About Sage Therapeutics

Sage Therapeutics, Inc., a biopharmaceutical company, develops and commercializes brain health medicines. Its product candidates include ZULRESSO, a CIV injection for the treatment of postpartum depression (PPD) in adults; and ZURZUVAE, a neuroactive steroid, a positive allosteric modulator of GABAA receptors, targeting both synaptic and extrasynaptic GABAA receptors, for the treatment of postpartum depression. Its product pipeline also comprises SAGE-324, a compound that is in Phase II clinical trial to treat essential tremors, as well as has completed Phase I clinical trial for epilepsy and Parkinson's diseases; and SAGE-718, an oxysterol-based positive allosteric modulator of the NMDA receptor, which is in Phase II clinical trial for the treatment of depression, Huntington's disease, Parkinson's diseases, Alzheimer's disease, attention deficit hyperactivity disorder, schizophrenia, and neuropathic pain. The company has a strategic collaboration with Shionogi & Co., Ltd. for the development and commercialization of zuranolone in Japan, Taiwan, and South Korea; and a collaboration and license agreement with Biogen MA Inc. to jointly develop and commercialize SAGE-217 and SAGE-324 products. The company was formerly known as Sterogen Biopharma, Inc. and changed its name to Sage Therapeutics, Inc. in September 2011. Sage Therapeutics, Inc. was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.

About Orgenesis

Orgenesis Inc., a biotech company, focuses on cell and gene therapies worldwide. It operates through two segments, Octomera and Therapies. The company develops a Point of Care (POCare) platform that includes a pipeline of licensed cell based POCare therapies that are processed and produced under closed and automated POCare technology systems across a collaborative POCare network consisting of research institutes and hospitals. Its therapies include autologous; cell-based immunotherapies; and therapeutics for metabolic diseases, anti-viral diseases, and tissue regeneration. The company also provides development services, including regulatory services, pre-clinical studies, intellectual property services, and GMP process translation, as well as support services; hospital services; cell process development services; and distributed cell processing services. The company was formerly known as Business Outsourcing Service, Inc. and changed its name to Orgenesis Inc. in August 2011. Orgenesis Inc. was incorporated in 2008 and is headquartered in Germantown, Maryland.