Organogenesis (NASDAQ:ORGO) versus Dermira (NASDAQ:DERM) Critical Review

Organogenesis (NASDAQ:ORGO) and Dermira (NASDAQ:DERM) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Earnings and Valuation

This table compares Organogenesis and Dermira’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Organogenesis $193.45 million 2.97 -$64.83 million N/A N/A
Dermira $42.34 million 10.66 -$221.54 million ($5.24) -1.58

Organogenesis has higher revenue and earnings than Dermira.

Institutional and Insider Ownership

1.7% of Organogenesis shares are held by institutional investors. Comparatively, 94.1% of Dermira shares are held by institutional investors. 70.4% of Organogenesis shares are held by company insiders. Comparatively, 12.4% of Dermira shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Organogenesis and Dermira, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Organogenesis 0 0 5 0 3.00
Dermira 0 1 7 0 2.88

Organogenesis currently has a consensus target price of $10.80, indicating a potential upside of 77.92%. Dermira has a consensus target price of $18.09, indicating a potential upside of 118.46%. Given Dermira’s higher probable upside, analysts clearly believe Dermira is more favorable than Organogenesis.

Profitability

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

Net Margins Return on Equity Return on Assets
Organogenesis N/A N/A N/A
Dermira -256.08% -583.07% -50.25%

Summary

Organogenesis beats Dermira on 7 of the 11 factors compared between the two stocks.

About Organogenesis

Organogenesis Holdings Inc., a regenerative medicine company, focuses on the development, manufacture, and commercialization of solutions for the advanced wound care, and surgical and sports medicine markets primarily in the United States. The company's advanced wound care products include Apligraf for the treatment of venous leg ulcers and diabetic foot ulcers (DFUs); Dermagraft for treating DFUs; PuraPly AM to address biofilm across a range of wound types; and Affinity and NuShield to address various wound sizes and types. Its surgical and sports medicine products comprise ReNu for in-office joint and tendon applications; NuCel for bony fusion in the spine and extremities; NuShield and Affinity for surgical applications in targeted soft tissue repairs; and PuraPly AM for the surgical treatment of open wounds. The company's pipeline products include TransCyte for the treatment of second- and third-degree burns; PuraForce, a bioengineered porcine collagen surgical matrix for use in soft tissue reinforcement applications; Novachor for the treatment of chronic and acute wounds; Gintuit for the treatment of mucogingival conditions in adults; and PuraPly XT and PuraPly MZ for the treatment of chronic and acute wounds, as well as for surgical treatment of open wounds. It serves hospitals, wound care centers, government facilities, ambulatory service centers, and physician offices. The company sells its products through direct sales representatives and independent agencies. Organogenesis Holdings Inc. was founded in 1985 and is headquartered in Canton, Massachusetts.

About Dermira

Dermira, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with dermatologic diseases in the United States. The company offers QBREXZA, a topical once-daily anticholinergic cloth for the treatment of primary axillary hyperhidrosis in adult and pediatric patients nine years of age and older. It also develops lebrikizumab, a novel injectable humanized monoclonal antibody targeting interleukin 13 that is in Phase IIb clinical trial for the treatment of moderate-to-severe atopic dermatitis; and early-stage research and development programs in other areas of dermatology. Dermira, Inc. has a right of first negotiation agreement with Maruho Co., Ltd. to develop and commercialize glycopyrronium tosylate for the treatment of hyperhidrosis in Japan; an agreement with F. Hoffmann-La Roche Ltd and Genentech, Inc. to develop and commercialize lebrikizumab; and a development and commercialization agreement with UCB Pharma S.A. to develop Cimzia for the treatment of psoriasis. The company was formerly known as Skintelligence, Inc. and changed its name to Dermira, Inc. in September 2011. Dermira, Inc. was founded in 2010 and is headquartered in Menlo Park, California.

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