Financial Review: CareDx (NASDAQ:CDNA) and Organogenesis (NASDAQ:ORGO)

CareDx (NASDAQ:CDNAGet Free Report) and Organogenesis (NASDAQ:ORGOGet Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings for CareDx and Organogenesis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareDx 0 4 3 1 2.62
Organogenesis 1 2 0 0 1.67

CareDx currently has a consensus price target of $51.20, suggesting a potential upside of 0.61%. Organogenesis has a consensus price target of $4.33, suggesting a potential upside of 153.41%. Given Organogenesis’ higher possible upside, analysts clearly believe Organogenesis is more favorable than CareDx.

Insider and Institutional Ownership

49.6% of Organogenesis shares are owned by institutional investors. 2.4% of CareDx shares are owned by company insiders. Comparatively, 18.8% of Organogenesis shares are owned by company 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 CareDx and Organogenesis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareDx 24.23% 2.87% 2.17%
Organogenesis -19.94% -23.89% -11.13%

Volatility and Risk

CareDx has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500. Comparatively, Organogenesis has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Valuation & Earnings

This table compares CareDx and Organogenesis”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CareDx $379.80 million 6.93 -$21.35 million $2.07 24.59
Organogenesis $564.17 million 0.39 $37.03 million ($0.86) -1.99

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

Summary

CareDx beats Organogenesis on 10 of the 15 factors compared between the two stocks.

About CareDx

(Get Free Report)

CareDx, Inc. engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients. The company offers Olerup SSP, which is used to type human leukocyte antigen (HLA) alleles based on sequence specific primer technology; QTYPE that enables precision in HLA typing; and Ottr, a transplant patient management software. In addition, it provides AlloSeq Tx, a high-resolution HLA typing solution; AlloSeq cfDNA, a surveillance solution to measure dd-cfDNA in blood; AlloSeq HCT, a solution for chimerism testing for stem cell transplant recipients; Allocell, a surveillance solution that monitors the level of engraftment and persistence of allogeneic cells for patients who have received cell therapy transplants; and XynQAPI cloud-based transplant quality management software, as well as AlloCare, a mobile app that offers a patient-centric resource for transplant recipients. The company offers its products directly to customers, as well as through third-party distributors and sub-distributors. It has a license agreement with Illumina, Inc. for the distribution, development, and commercialization of NGS products and technologies; and Cibiltech SAS to commercialize iBox, a software for the predictive analysis of post-transplantation kidney allograft loss. The company was formerly known as XDx, Inc. and changed its name to CareDx, Inc. in March 2014. The company was incorporated in 1998 and is headquartered in South San Francisco, California.

About Organogenesis

(Get Free Report)

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.

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