Aadi Bioscience (NASDAQ:AADI) versus Orgenesis (NASDAQ:ORGS) Critical Analysis

Aadi Bioscience (NASDAQ:AADI) and Orgenesis (NASDAQ:ORGS) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and target prices for Aadi Bioscience and Orgenesis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aadi Bioscience	0	5	0	0	2.00
Orgenesis	0	0	0	0	0.00

Aadi Bioscience currently has a consensus target price of $1.67, suggesting a potential upside of 0.40%. Given Aadi Bioscience’s stronger consensus rating and higher probable upside, equities analysts clearly believe Aadi Bioscience is more favorable than Orgenesis.

Earnings and Valuation

This table compares Aadi Bioscience and Orgenesis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aadi Bioscience	$25.07 million	1.64	-$65.76 million	($2.35)	-0.71
Orgenesis	$662,000.00	18.27	-$55.36 million	N/A	N/A

Orgenesis has lower revenue, but higher earnings than Aadi Bioscience.

Institutional & Insider Ownership

52.1% of Aadi Bioscience shares are owned by institutional investors. Comparatively, 22.6% of Orgenesis shares are owned by institutional investors. 37.3% of Aadi Bioscience shares are owned by company insiders. Comparatively, 5.7% of Orgenesis shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Aadi Bioscience has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Orgenesis has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares Aadi Bioscience and Orgenesis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aadi Bioscience	-246.06%	-71.87%	-57.28%
Orgenesis	-3,827.81%	N/A	-130.18%

Summary

Aadi Bioscience beats Orgenesis on 7 of the 11 factors compared between the two stocks.

About Aadi Bioscience

Aadi Bioscience, Inc., a biopharmaceutical company, engages in developing and commercializing precision therapies for genetically defined cancers with alterations in mTOR pathway genes. Its lead drug product candidate comprises FYARRO, a form of sirolimus protein-bound particles for injectable suspension for the treatment in adult patients with advanced unresectable or metastatic malignant PEComa. The company is also involved in evaluating FYARRO in cancers, including indications targeting specific genomic alterations that activate the mTOR pathway. Aadi Bioscience, Inc. was incorporated in 2007 and is headquartered in Pacific Palisades, California.

About Orgenesis

Orgenesis Inc., a biotech company, focuses on cell and gene therapies worldwide. It operates through two segments, Octomera and Therapies. The company develops a Point of Care (POCare) platform that includes a pipeline of licensed cell based POCare therapies that are processed and produced under closed and automated POCare technology systems across a collaborative POCare network consisting of research institutes and hospitals. Its therapies include autologous; cell-based immunotherapies; and therapeutics for metabolic diseases, anti-viral diseases, and tissue regeneration. The company also provides development services, including regulatory services, pre-clinical studies, intellectual property services, and GMP process translation, as well as support services; hospital services; cell process development services; and distributed cell processing services. The company was formerly known as Business Outsourcing Service, Inc. and changed its name to Orgenesis Inc. in August 2011. Orgenesis Inc. was incorporated in 2008 and is headquartered in Germantown, Maryland.