Biogen Inc. (BIIB) vs Organon & Co. (OGN)

Biogen Inc. and Organon & Co. are both Drug Manufacturers General companies. Biogen Inc. is the larger, with a market value of $33.5B against $3.6B — 9.3× the size. Organon & Co. trades at the lower P/E: 17.4× against 40.1×. Biogen Inc. grew revenue faster over the last twelve months: 0.31% against −2.45%. Biogen Inc. has the higher net margin (8.32% vs 3.41%) and the lower return on invested capital (3.11% vs 6.11%). Across the 22 metrics below, Organon & Co. leads on 12 and Biogen Inc. on 10.

Valuation

Metric BIIB OGN Drug Manufacturers General median
P/E 40.07 17.38 24.72
P/S 3.35 0.59 3.35
P/B 1.78 3.58 5.00
Price to free cash flow 13.23 7.77 17.68
EV/EBITDA 15.37 7.82 13.91
EV/Sales 3.95 1.80 3.95
Earnings yield 2.50% 5.75% 2.92%
Free cash flow yield 7.56% 12.87% 4.42%

Profitability

Metric BIIB OGN Drug Manufacturers General median
Gross margin 73.99% 52.68% 72.77%
Operating margin 12.35% 13.45% 18.90%
Net margin 8.32% 3.41% 8.27%
Free cash flow margin 25.33% 7.57% 17.25%
Return on equity 4.58% 24.04% 6.97%
Return on assets 2.76% 1.57% 2.76%
Return on invested capital 3.11% 6.11% 6.30%

Growth

Metric BIIB OGN Drug Manufacturers General median
Revenue growth (TTM) 0.31% (2.45%) 6.79%
EPS growth (last fiscal year) (21.38%) (78.38%) —
Revenue growth, 5-year CAGR (5.96%) (0.99%) 3.98%
Net income growth, 5-year CAGR (20.22%) (38.70%) 0.42%

Health

Metric BIIB OGN Drug Manufacturers General median
Debt to equity 0.39 8.50 0.63
Current ratio 1.87 1.95 1.32
Net debt to EBITDA 0.84 5.62 1.15

Dividend

Metric BIIB OGN Drug Manufacturers General median
Dividend yield — 6.88% 3.57%
Payout ratio 0.00 0.38 0.53

Size

Metric BIIB OGN Drug Manufacturers General median
Market cap 33.54b 3.60b 125.91b

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