Organon & Co. (OGN) vs Sanofi (SNY)

Organon & Co. and Sanofi are both Drug Manufacturers General companies. Sanofi is the larger, with a market value of $97.4B against $3.6B — 27.1× the size. Organon & Co. trades at the lower P/E: 17.4× against 21.5×. Sanofi grew revenue faster over the last twelve months: 21.3% against −2.45%. Sanofi has the higher net margin (8.22% vs 3.41%) and the higher return on invested capital (6.58% vs 6.11%). Both pay a dividend; Organon & Co. yields more (6.88% vs 4.40%). Across the 23 metrics below, Sanofi leads on 15 and Organon & Co. on 8.

Valuation

Metric OGN SNY Drug Manufacturers General median
P/E 17.38 21.52 24.72
P/S 0.59 1.73 3.35
P/B 3.58 1.22 5.00
Price to free cash flow 7.77 6.77 17.68
EV/EBITDA 7.82 11.19 13.91
EV/Sales 1.80 2.04 3.95
Earnings yield 5.75% 4.65% 2.92%
Free cash flow yield 12.87% 14.78% 4.42%

Profitability

Metric OGN SNY Drug Manufacturers General median
Gross margin 52.68% 72.78% 72.77%
Operating margin 13.45% 18.24% 18.90%
Net margin 3.41% 8.22% 8.27%
Free cash flow margin 7.57% 25.53% 17.25%
Return on equity 24.04% 5.87% 6.97%
Return on assets 1.57% 3.21% 2.76%
Return on invested capital 6.11% 6.58% 6.30%

Growth

Metric OGN SNY Drug Manufacturers General median
Revenue growth (TTM) (2.45%) 21.30% 6.79%
EPS growth (last fiscal year) (78.38%) 45.97% —
Revenue growth, 5-year CAGR (0.99%) 4.37% 3.98%
Net income growth, 5-year CAGR (38.70%) (8.87%) 0.42%

Health

Metric OGN SNY Drug Manufacturers General median
Debt to equity 8.50 0.31 0.63
Current ratio 1.95 0.99 1.32
Net debt to EBITDA 5.62 0.76 1.15

Dividend

Metric OGN SNY Drug Manufacturers General median
Dividend yield 6.88% 4.40% 3.57%
Payout ratio 0.38 0.52 0.53

Size

Metric OGN SNY Drug Manufacturers General median
Market cap 3.60b 97.44b 125.91b

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