Critical Analysis: Amarin (AMRN) vs. Regeneron Pharmaceuticals (REGN)
Regeneron Pharmaceuticals (NASDAQ: REGN) and Amarin (NASDAQ:AMRN) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Regeneron Pharmaceuticals has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Amarin has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
66.6% of Regeneron Pharmaceuticals shares are owned by institutional investors. Comparatively, 40.1% of Amarin shares are owned by institutional investors. 10.8% of Regeneron Pharmaceuticals shares are owned by insiders. Comparatively, 3.7% of Amarin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Regeneron Pharmaceuticals and Amarin, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Regeneron Pharmaceuticals currently has a consensus target price of $471.30, suggesting a potential upside of 28.43%. Amarin has a consensus target price of $9.00, suggesting a potential upside of 111.76%. Given Amarin’s stronger consensus rating and higher possible upside, analysts plainly believe Amarin is more favorable than Regeneron Pharmaceuticals.
This table compares Regeneron Pharmaceuticals and Amarin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Regeneron Pharmaceuticals and Amarin’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Regeneron Pharmaceuticals||$4.86 billion||8.11||$895.52 million||$11.01||33.33|
|Amarin||$130.08 million||8.85||-$86.35 million||($0.27)||-15.74|
Regeneron Pharmaceuticals has higher revenue and earnings than Amarin. Amarin is trading at a lower price-to-earnings ratio than Regeneron Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Regeneron Pharmaceuticals beats Amarin on 11 of the 14 factors compared between the two stocks.
About Regeneron Pharmaceuticals
Regeneron Pharmaceuticals, Inc. is a biopharmaceutical company that discovers, invents, develops, manufactures and commercializes medicines for the treatment of serious medical conditions. The Company commercializes medicines for eye diseases, high low-density lipoprotein (LDL) cholesterol, and an inflammatory condition and have product candidates in development in other areas, including rheumatoid arthritis, asthma, atopic dermatitis, pain, cancer, and infectious diseases. The Company’s marketed products include EYLEA (aflibercept) Injection, Praluent (alirocumab) Injection, ARCALYST (rilonacept) Injection for Subcutaneous Use, Kevzara (sarilumab) Solution for Subcutaneous Injection and ZALTRAP (ziv-aflibercept) Injection for Intravenous Infusion. As of December 31, 2016, the Company had 16 product candidates in clinical development, which consisted of a Trap-based clinical program and 15 fully human monoclonal antibody product candidates.
Amarin Corporation plc is a biopharmaceutical company with operations in lipid science focused on the commercialization and development of therapeutics for cardiovascular health. The Company operates through the development and commercialization of Vascepa segment. The Company’s lead product, Vascepa (icosapent ethyl) capsule, is approved by the United States Food and Drug Administration (FDA) for use as an adjunct to diet to reduce triglyceride levels in adult patients with severe hypertriglyceridemia. This indication for Vascepa, known as the MARINE indication, is based primarily on the results from the MARINE study of Vascepa in this approved patient population. The Company sells Vascepa principally to wholesalers, as well as selected regional wholesalers and specialty pharmacy providers, or collectively, its distributors, which in turn resell Vascepa to retail pharmacies for resale to patients and healthcare providers.
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