Organon & Co. (NYSE:OGN – Get Free Report) and Amarin (NASDAQ:AMRN – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Institutional and Insider Ownership
77.4% of Organon & Co. shares are owned by institutional investors. Comparatively, 22.3% of Amarin shares are owned by institutional investors. 1.6% of Organon & Co. shares are owned by company insiders. Comparatively, 4.2% of Amarin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Organon & Co. and Amarin, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Organon & Co. | 2 | 5 | 0 | 0 | 1.71 |
| Amarin | 2 | 0 | 0 | 1 | 2.00 |
Organon & Co. presently has a consensus target price of $11.40, indicating a potential downside of 17.06%. Amarin has a consensus target price of $13.00, indicating a potential upside of 8.79%. Given Amarin’s stronger consensus rating and higher possible upside, analysts plainly believe Amarin is more favorable than Organon & Co..
Profitability
This table compares Organon & Co. and Amarin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Organon & Co. | N/A | N/A | N/A |
| Amarin | N/A | N/A | N/A |
Valuation & Earnings
This table compares Organon & Co. and Amarin”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Organon & Co. | $6.13 billion | 0.59 | $202.21 million | $0.77 | 17.85 |
| Amarin | $186.23 million | 1.36 | -$20.91 million | ($0.99) | -12.07 |
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.
Risk and Volatility
Organon & Co. has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Amarin has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Summary
Organon & Co. beats Amarin on 6 of the 11 factors compared between the two stocks.
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.
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.
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