Analyzing Amarin (AMRN) and The Competition

Amarin (NASDAQ:AMRN – Get Free Report) is one of 896 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its peers? We will compare Amarin to similar companies based on the strength of its earnings, valuation, institutional ownership, dividends, analyst recommendations, risk and profitability.

Insider and Institutional Ownership

22.3% of Amarin shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 4.2% of Amarin shares are held by insiders. Comparatively, 14.2% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Amarin has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Amarin’s peers have a beta of -4.04, indicating that their average stock price is 504% less volatile than the S&P 500.

Profitability

This table compares Amarin and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amarin -10.87% -0.52% -0.36%
Amarin Competitors -2,372.59% -220.82% -15.99%

Valuation & Earnings

This table compares Amarin and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Amarin $213.65 million -$38.80 million -12.09
Amarin Competitors $3.54 billion $3.17 billion 554.50

Amarin’s peers have higher revenue and earnings than Amarin. Amarin is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for Amarin and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amarin 2 1 0 0 1.33
Amarin Competitors 7792 13886 25777 1037 2.41

Amarin currently has a consensus target price of $13.00, suggesting a potential upside of 11.97%. As a group, “Pharmaceuticals” companies have a potential upside of 25.66%. Given Amarin’s peers stronger consensus rating and higher possible upside, analysts plainly believe Amarin has less favorable growth aspects than its peers.

Summary

Amarin peers beat Amarin on 9 of the 13 factors compared.

About Amarin

(Get Free Report)

Amarin Corporation plc, a pharmaceutical company, engages in the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States, European countries, Canada, Lebanon, and the United Arab Emirates. The company offers VASCEPA, a prescription-only omega-3 fatty acid product, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. It sells its products principally to wholesalers and specialty pharmacy providers. The company has a collaboration with Mochida Pharmaceutical Co., Ltd. to develop and commercialize drug products and indications based on the active pharmaceutical ingredient in Vascepa. The company was formerly known as Ethical Holdings plc and changed its name to Amarin Corporation plc in 1999. Amarin Corporation plc was incorporated in 1989 and is headquartered in Dublin, Ireland.

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