Elanco Animal Health (NYSE:ELAN) and Amarin (NASDAQ:AMRN) Head to Head Review

Amarin (NASDAQ:AMRN) and Elanco Animal Health (NYSE:ELAN) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Amarin and Elanco Animal Health, as provided by MarketBeat.

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

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

Volatility and Risk

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

Profitability

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

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

Institutional & Insider Ownership

22.3% of Amarin shares are owned by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are owned by institutional investors. 4.2% of Amarin shares are owned by insiders. Comparatively, 1.1% of Elanco Animal Health 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.

Valuation and Earnings

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

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

Amarin has higher earnings, but lower revenue 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.

Summary

Elanco Animal Health beats Amarin on 12 of the 15 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 Elanco Animal Health

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.