Comparing Amarin (NASDAQ:AMRN) & Elanco Animal Health (NYSE:ELAN)

Elanco Animal Health (NYSE:ELANGet Free Report) and Amarin (NASDAQ:AMRNGet Free Report) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Elanco Animal Health and Amarin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elanco Animal Health -3.96% 8.13% 3.99%
Amarin -14.56% -0.20% -0.14%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Elanco Animal Health and Amarin, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elanco Animal Health 1 2 9 1 2.77
Amarin 2 1 0 0 1.33

Elanco Animal Health presently has a consensus target price of $29.09, indicating a potential upside of 26.35%. Amarin has a consensus target price of $13.00, indicating a potential downside of 6.68%. Given Elanco Animal Health’s stronger consensus rating and higher probable upside, equities analysts plainly believe Elanco Animal Health is more favorable than Amarin.

Institutional and Insider Ownership

97.5% of Elanco Animal Health shares are owned by institutional investors. Comparatively, 22.3% of Amarin shares are owned by institutional investors. 1.1% of Elanco Animal Health shares are owned by company insiders. Comparatively, 4.2% of Amarin shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Elanco Animal Health and Amarin”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elanco Animal Health $4.71 billion 2.44 -$232.00 million ($0.41) -56.16
Amarin $213.65 million 1.38 -$38.80 million ($0.99) -14.07

Amarin has lower revenue, but higher earnings than Elanco Animal Health. Elanco Animal Health is trading at a lower price-to-earnings ratio than Amarin, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Elanco Animal Health has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Amarin has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Summary

Elanco Animal Health beats Amarin on 12 of the 15 factors compared between the two stocks.

About Elanco Animal Health

(Get Free Report)

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.

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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