Novo Nordisk A/S (NYSE:NVO – Get Free Report) and Amarin (NASDAQ:AMRN – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
Volatility and Risk
Novo Nordisk A/S has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Amarin has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Valuation & Earnings
This table compares Novo Nordisk A/S and Amarin”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Novo Nordisk A/S | $333.65 billion | 0.55 | $15.51 billion | $3.97 | 10.36 |
| Amarin | $176.11 million | 1.40 | -$38.80 million | ($0.96) | -12.20 |
Novo Nordisk A/S has higher revenue and earnings than Amarin. Amarin is trading at a lower price-to-earnings ratio than Novo Nordisk A/S, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
11.5% of Novo Nordisk A/S shares are held by institutional investors. Comparatively, 22.3% of Amarin shares are held by institutional investors. 0.1% of Novo Nordisk A/S shares are held by company insiders. Comparatively, 4.2% of Amarin shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Novo Nordisk A/S and Amarin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Novo Nordisk A/S | 33.99% | 53.52% | 19.49% |
| Amarin | -10.87% | -0.52% | -0.36% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Novo Nordisk A/S and Amarin, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Novo Nordisk A/S | 5 | 16 | 5 | 0 | 2.00 |
| Amarin | 2 | 1 | 0 | 0 | 1.33 |
Novo Nordisk A/S currently has a consensus target price of $59.44, suggesting a potential upside of 44.52%. Amarin has a consensus target price of $13.00, suggesting a potential upside of 11.02%. Given Novo Nordisk A/S’s stronger consensus rating and higher possible upside, equities analysts plainly believe Novo Nordisk A/S is more favorable than Amarin.
Summary
Novo Nordisk A/S beats Amarin on 10 of the 14 factors compared between the two stocks.
About Novo Nordisk A/S
Novo Nordisk A/S is a Danish pharmaceutical company focused on treatments for diabetes, obesity and other serious chronic diseases. Its portfolio includes insulin and other diabetes medicines, as well as obesity treatments such as Wegovy and diabetes treatments such as Ozempic and Rybelsus. The company also develops medicines for rare blood and endocrine disorders, including hemophilia and growth disorders. Its products are sold in markets around the world. Novo Nordisk traces its roots to Danish insulin companies founded in the 1920s; the two organizations that became Novo Nordisk merged in 1989.
About Amarin
Amarin Corporation plc is a biopharmaceutical company focused on cardiovascular health. Its principal product is VASCEPA, a prescription medicine containing icosapent ethyl, an omega-3 fatty acid derivative. In the United States, VASCEPA is approved for use with a statin and other measures to reduce the risk of certain cardiovascular events in eligible adults with elevated triglycerides. It is also approved as an adjunct to diet to lower triglyceride levels in adults with severe hypertriglyceridemia.
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