Fractyl Health (NASDAQ:GUTS) and Organogenesis (NASDAQ:ORGO) Head to Head Review

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

Insider and Institutional Ownership

49.6% of Organogenesis shares are owned by institutional investors. 18.8% of Organogenesis shares are owned by company insiders. Comparatively, 8.4% of Fractyl Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Organogenesis and Fractyl Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organogenesis	$564.17 million	0.32	$37.03 million	($0.86)	-1.62
Fractyl Health	$90,000.00	994.87	-$140.95 million	($0.88)	-0.64

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Organogenesis and Fractyl Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organogenesis	1	2	0	0	1.67
Fractyl Health	1	1	3	0	2.40

Organogenesis currently has a consensus target price of $4.33, indicating a potential upside of 211.75%. Fractyl Health has a consensus target price of $5.50, indicating a potential upside of 877.78%. Given Fractyl Health’s stronger consensus rating and higher possible upside, analysts clearly believe Fractyl Health is more favorable than Organogenesis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Organogenesis	-19.94%	-23.89%	-11.13%
Fractyl Health	N/A	-1,362.10%	-84.89%

Risk and Volatility

Organogenesis has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Fractyl Health has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500.

About Organogenesis

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.

About Fractyl Health

Fractyl Health, Inc., a metabolic therapeutics company, develops therapies for the treatment of type 2 diabetes (T2D) and obesity. The company develops Revita DMR System (Revita), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high fat and high sugar diet, which can initiate T2D and obesity in humans. It also develops Rejuva, a novel adeno-associated virus delivered pancreatic gene therapy platform that is designed to enable long-term remission of T2D and obesity by durably altering metabolic hormone function in the pancreatic islet cells of patients. Fractyl Health, Inc. was formerly known as Fractyl Laboratories Inc. and changed its name to Fractyl Health, Inc. on June 09, 2021. The company was incorporated in 2010 and is headquartered in Burlington, Massachusetts.