Amneal Pharmaceuticals (NASDAQ:AMRX) and Organon & Co. (NYSE:OGN) Critical Analysis

Organon & Co. (NYSE:OGN) and Amneal Pharmaceuticals (NASDAQ:AMRX) are both mid-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Earnings and Valuation

This table compares Organon & Co. and Amneal Pharmaceuticals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organon & Co.	$6.22 billion	0.58	$187.00 million	$0.77	17.86
Amneal Pharmaceuticals	$3.02 billion	2.22	$72.06 million	$0.49	42.90

Organon & Co. has higher revenue and earnings than Amneal Pharmaceuticals. Organon & Co. is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

77.4% of Organon & Co. shares are owned by institutional investors. Comparatively, 31.8% of Amneal Pharmaceuticals shares are owned by institutional investors. 1.6% of Organon & Co. shares are owned by company insiders. Comparatively, 17.3% of Amneal Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Organon & Co. and Amneal Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organon & Co.	3.41%	88.97%	6.03%
Amneal Pharmaceuticals	5.05%	-584.46%	7.78%

Volatility & Risk

Organon & Co. has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Amneal Pharmaceuticals has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Organon & Co. and Amneal Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organon & Co.	2	5	0	0	1.71
Amneal Pharmaceuticals	1	0	9	0	2.80

Organon & Co. currently has a consensus target price of $11.40, suggesting a potential downside of 17.12%. Amneal Pharmaceuticals has a consensus target price of $21.25, suggesting a potential upside of 1.09%. Given Amneal Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts plainly believe Amneal Pharmaceuticals is more favorable than Organon & Co..

Summary

Amneal Pharmaceuticals beats Organon & Co. on 8 of the 14 factors compared between the two stocks.

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.

About Amneal Pharmaceuticals

Amneal Pharmaceuticals, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers immediate and extended release oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment develops, promotes, sells, and distributes pharmaceutical products with focus on central nervous system disorders, including Parkinson's disease, and endocrine disorders. This segment also provides Rytary, an oral capsule formulation of carbidopa-levodopa to treat Parkinson's disease, post-encephalitic parkinsonism, and parkinsonism; Unithroid for the treatment of hypothyroidism; and IPX203, a pipeline product for Parkinson's disease. The AvKARE segment offers pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. This segment also distributes bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names; and packages and distributes pharmaceuticals and vitamins to its retail and institutional customers. It sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.