Critical Contrast: Organogenesis (NASDAQ:ORGO) & Evotec (OTCMKTS:EVTCY)

Organogenesis (NASDAQ:ORGOGet Rating) and Evotec (OTCMKTS:EVTCYGet Rating) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Organogenesis and Evotec’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Organogenesis $468.06 million 1.70 $94.90 million $0.63 9.79
Evotec $572.16 million 7.17 $7.14 million N/A N/A

Organogenesis has higher earnings, but lower revenue than Evotec.

Profitability

This table compares Organogenesis and Evotec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Organogenesis 18.34% 41.46% 22.04%
Evotec 20.85% 16.02% 7.81%

Volatility & Risk

Organogenesis has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Evotec has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Organogenesis and Evotec, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Organogenesis 0 0 3 0 3.00
Evotec 0 1 0 0 2.00

Organogenesis currently has a consensus price target of $23.00, indicating a potential upside of 272.77%. Given Organogenesis’ stronger consensus rating and higher possible upside, research analysts plainly believe Organogenesis is more favorable than Evotec.

Institutional & Insider Ownership

38.4% of Organogenesis shares are owned by institutional investors. 34.2% of Organogenesis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Organogenesis beats Evotec on 9 of the 13 factors compared between the two stocks.

Organogenesis Company Profile (Get Rating)

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 wound covering 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, and cytokines; NuShield, a wound covering tissue includes both amnion and chorion membranes for spongy/intermediate layer intact; PuraPly , a antimicrobial barrier that enables conformability and fluid drainage; and Novachor, an amniotic membrane wound covering in which viable cells, growth factors/cytokines, and ECM proteins are preserved. Its surgical and sports medicine products comprise NuCel, a dehydrated placental tissue surgically applied to the target tissue to support native healing; ReNu, a cryopreserved suspension used to support healing of soft tissues; and FiberOS and OCMP used as a bone void filler primarily in orthopedic and neurosurgical applications. The company's pipeline products include PuraPly XT and PuraPly MZ to treat chronic, acute, and open wounds; 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 force and independent agencies. The company was founded in 1985 and is headquartered in Canton, Massachusetts.

Evotec Company Profile (Get Rating)

Evotec SE engages in the discovery and development of new drugs for pharmaceutical and biotechnology companies. It operates through the following segments: EVT Execute and EVT Innovate. The EVT Execute segment provides stand-alone or integrated drug discovery solutions for collaborators targets and programmers on a typical fee-for-service basis or through a variety of commercial structures, which may include performance-based components, such as milestones and royalties. The EVT Innovate develops drug discovery projects, assets and platforms, both internally or through academic collaborations. The company was founded by Manfred Eigen, Karsten Henco, Ulrich Aldag, Freimut Leidenberger, Heinrich Maria Schulte, Rudolf Rigler, and Charles Weissmann on December 8, 1993 and is headquartered in Hamburg, Germany.

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