Amarin (NASDAQ:AMRN) and Organon & Co. (NYSE:OGN) Critical Contrast

Amarin (NASDAQ:AMRN) and Organon & Co. (NYSE:OGN) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Amarin and Organon & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amarin	N/A	N/A	N/A
Organon & Co.	N/A	N/A	N/A

Risk and Volatility

Amarin has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Organon & Co. has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Insider and Institutional Ownership

22.3% of Amarin shares are held by institutional investors. Comparatively, 77.4% of Organon & Co. shares are held by institutional investors. 4.2% of Amarin shares are held by insiders. Comparatively, 1.6% of Organon & Co. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Amarin and Organon & Co.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amarin	$186.23 million	1.36	-$20.91 million	($0.99)	-12.07
Organon & Co.	$6.13 billion	0.59	$202.21 million	$0.77	17.85

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Amarin and Organon & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amarin	2	0	0	1	2.00
Organon & Co.	2	5	0	0	1.71

Amarin presently has a consensus target price of $13.00, indicating a potential upside of 8.79%. Organon & Co. has a consensus target price of $11.40, indicating a potential downside of 17.06%. Given Amarin’s stronger consensus rating and higher possible upside, analysts clearly believe Amarin is more favorable than Organon & Co..

Summary

Organon & Co. beats Amarin on 6 of the 11 factors compared between the two stocks.

About Amarin

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.

About Organon & Co.

Organon & Co. is a science based global pharmaceutical company, which develops and delivers innovative health solutions through a portfolio of prescription therapies within women’s health, biosimilars and established brands. The company was founded on March 11, 2020, and is headquartered in Jersey City, NJ.