Amarin (NASDAQ:AMRN) vs. Journey Medical (NASDAQ:DERM) Financial Analysis

Journey Medical (NASDAQ:DERM) and Amarin (NASDAQ:AMRN) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

7.2% of Journey Medical shares are owned by institutional investors. Comparatively, 22.3% of Amarin shares are owned by institutional investors. 14.5% of Journey Medical shares are owned by insiders. Comparatively, 4.2% of Amarin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Journey Medical and Amarin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Journey Medical	-8.95%	-20.23%	-6.60%
Amarin	-10.87%	-0.52%	-0.36%

Analyst Ratings

This is a summary of current recommendations and price targets for Journey Medical and Amarin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Journey Medical	1	0	2	0	2.33
Amarin	2	1	0	0	1.33

Journey Medical presently has a consensus target price of $14.00, suggesting a potential upside of 213.20%. Amarin has a consensus target price of $13.00, suggesting a potential upside of 11.97%. Given Journey Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Journey Medical is more favorable than Amarin.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Journey Medical	$61.86 million	2.04	-$11.43 million	($0.22)	-20.32
Amarin	$213.65 million	1.15	-$38.80 million	($0.96)	-12.09

Journey Medical has higher earnings, but lower revenue than Amarin. Journey Medical is trading at a lower price-to-earnings ratio than Amarin, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Journey Medical has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Amarin has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

Journey Medical beats Amarin on 9 of the 14 factors compared between the two stocks.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.

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.