Organigram Global (NASDAQ:OGI – Get Free Report) and Varex Imaging (NASDAQ:VREX – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Profitability
This table compares Organigram Global and Varex Imaging’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Organigram Global | 28.14% | -13.39% | -8.67% |
| Varex Imaging | 2.55% | 9.19% | 4.13% |
Valuation & Earnings
This table compares Organigram Global and Varex Imaging”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Organigram Global | $185.07 million | 0.80 | -$17.70 million | $0.46 | 2.28 |
| Varex Imaging | $844.60 million | 0.92 | -$70.30 million | $0.52 | 35.50 |
Organigram Global has higher earnings, but lower revenue than Varex Imaging. Organigram Global is trading at a lower price-to-earnings ratio than Varex Imaging, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
34.6% of Organigram Global shares are owned by institutional investors. 0.1% of Organigram Global shares are owned by company insiders. Comparatively, 4.6% of Varex Imaging shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Organigram Global and Varex Imaging, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Organigram Global | 1 | 0 | 2 | 0 | 2.33 |
| Varex Imaging | 0 | 7 | 0 | 0 | 2.00 |
Varex Imaging has a consensus target price of $16.88, indicating a potential downside of 8.59%. Given Varex Imaging’s higher possible upside, analysts plainly believe Varex Imaging is more favorable than Organigram Global.
Risk and Volatility
Organigram Global has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Summary
Varex Imaging beats Organigram Global on 8 of the 14 factors compared between the two stocks.
About Organigram Global
Organigram Holdings Inc., through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers; adult use recreational cannabis under the SHRED, Holy Mountain, Big Bag O' Buds, Monjour, Trailblazer, SHRED'ems, Edison Cannabis Co., Edison JOLTS, Tremblant, and Laurentian brands. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative-based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as consumer channels. The company was incorporated in 2010 and is headquartered in Toronto, Canada.
About Varex Imaging
Varex Imaging Corporation designs, manufactures, and sells X-ray imaging components. The company operates through two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components, comprising X-ray tubes, digital detectors and accessories, ionization chambers, high voltage connectors, image-processing software and workstations, 3D reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, and heat exchangers. This segment's products are used in a range of applications, including CT, mammography, oncology, cardiac, surgery, dental, and other diagnostic radiography uses. The Industrial segment designs, develops, manufactures, sells, and services Linatron X-ray linear accelerators, X-ray tubes, digital detectors, high voltage connectors, and coolers for use in security and inspection applications, such as baggage screening at airports, cargo screening at ports and borders, and nondestructive testing, irradiation, and inspection in various applications. The company sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. It has operations in North America, South America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation was incorporated in 2016 and is headquartered in Salt Lake City, Utah.
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