Merck KGaA (OTCMKTS:MKKGY – Get Free Report) and Amarin (NASDAQ:AMRN – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Risk & Volatility
Merck KGaA has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Amarin has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Valuation & Earnings
This table compares Merck KGaA and Amarin”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Merck KGaA | $23.87 billion | 0.84 | $2.95 billion | $1.94 | 16.01 |
| Amarin | $213.65 million | 1.19 | -$38.80 million | ($0.99) | -12.15 |
Merck KGaA has higher revenue and earnings than Amarin. Amarin is trading at a lower price-to-earnings ratio than Merck KGaA, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Merck KGaA and Amarin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Merck KGaA | 11.20% | 8.10% | 4.58% |
| Amarin | -14.56% | -0.20% | -0.14% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Merck KGaA and Amarin, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Merck KGaA | 0 | 6 | 0 | 0 | 2.00 |
| Amarin | 2 | 0 | 0 | 1 | 2.00 |
Amarin has a consensus target price of $13.00, indicating a potential upside of 8.06%. Given Amarin’s higher possible upside, analysts clearly believe Amarin is more favorable than Merck KGaA.
Insider and Institutional Ownership
0.1% of Merck KGaA shares are held by institutional investors. Comparatively, 22.3% of Amarin shares are held by institutional investors. 4.2% of Amarin shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Merck KGaA beats Amarin on 8 of the 13 factors compared between the two stocks.
About Merck KGaA
Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company’s Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.
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.
Receive News & Ratings for Merck KGaA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Merck KGaA and related companies with MarketBeat.com's FREE daily email newsletter.
