Analyzing Amneal Pharmaceuticals (NASDAQ:AMRX) & Amarin (NASDAQ:AMRN)

Amneal Pharmaceuticals (NASDAQ:AMRX) and Amarin (NASDAQ:AMRN) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Amneal Pharmaceuticals and Amarin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amneal Pharmaceuticals	4.17%	283.50%	7.79%
Amarin	-10.87%	-0.52%	-0.36%

Earnings & Valuation

This table compares Amneal Pharmaceuticals and Amarin”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amneal Pharmaceuticals	$3.02 billion	2.27	$72.06 million	$0.42	51.15
Amarin	$176.11 million	1.38	-$38.80 million	($0.96)	-12.00

Amneal Pharmaceuticals has higher revenue and earnings than Amarin. Amarin is trading at a lower price-to-earnings ratio than Amneal Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Amneal Pharmaceuticals has a beta of 1.24, suggesting that its stock price is 24% more 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.

Institutional & Insider Ownership

31.8% of Amneal Pharmaceuticals shares are held by institutional investors. Comparatively, 22.3% of Amarin shares are held by institutional investors. 17.3% of Amneal Pharmaceuticals shares are held by company insiders. Comparatively, 4.2% of Amarin shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Amneal Pharmaceuticals and Amarin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amneal Pharmaceuticals	0	2	8	0	2.80
Amarin	2	1	0	0	1.33

Amneal Pharmaceuticals currently has a consensus target price of $23.00, suggesting a potential upside of 7.06%. Amarin has a consensus target price of $13.00, suggesting a potential upside of 12.89%. Given Amarin’s higher probable upside, analysts plainly believe Amarin is more favorable than Amneal Pharmaceuticals.

Summary

Amneal Pharmaceuticals beats Amarin on 13 of the 14 factors compared between the two stocks.

About Amneal Pharmaceuticals

Amneal Pharmaceuticals is a U.S.-based pharmaceutical company that develops, manufactures and markets generic and specialty medicines. Its products include a broad range of generic drugs, including complex formulations and injectable medicines, as well as branded therapies in areas such as neurology and endocrinology. The company also operates AvKARE, which distributes pharmaceuticals and medical products to government, institutional and commercial customers. Amneal serves customers in the United States and in international markets.

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.