Enanta Pharmaceuticals (NASDAQ:ENTA – Get Free Report) and Amarin (NASDAQ:AMRN – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Profitability
This table compares Enanta Pharmaceuticals and Amarin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enanta Pharmaceuticals | -96.89% | -61.84% | -20.70% |
| Amarin | -10.87% | -0.52% | -0.36% |
Insider & Institutional Ownership
95.0% of Enanta Pharmaceuticals shares are held by institutional investors. Comparatively, 22.3% of Amarin shares are held by institutional investors. 11.5% of Enanta Pharmaceuticals shares are held by company insiders. Comparatively, 4.2% of Amarin shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Enanta Pharmaceuticals has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Amarin has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Valuation and Earnings
This table compares Enanta Pharmaceuticals and Amarin”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enanta Pharmaceuticals | $65.32 million | 5.04 | -$81.89 million | ($2.41) | -4.69 |
| Amarin | $213.65 million | 1.16 | -$38.80 million | ($0.96) | -12.18 |
Amarin has higher revenue and earnings than Enanta Pharmaceuticals. Amarin is trading at a lower price-to-earnings ratio than Enanta Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Enanta Pharmaceuticals and Amarin, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enanta Pharmaceuticals | 1 | 0 | 3 | 0 | 2.50 |
| Amarin | 2 | 1 | 0 | 0 | 1.33 |
Enanta Pharmaceuticals presently has a consensus target price of $19.00, indicating a potential upside of 67.99%. Amarin has a consensus target price of $13.00, indicating a potential upside of 11.16%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Enanta Pharmaceuticals is more favorable than Amarin.
About Enanta Pharmaceuticals
Enanta Pharmaceuticals, Inc. is a clinical-stage biotechnology company focused on discovering and developing small-molecule therapies for viral infections and other diseases. The company’s research has primarily centered on treatments for hepatitis B virus (HBV), respiratory syncytial virus (RSV), and other serious infectious diseases. Enanta’s most notable commercial contribution is its discovery of glecaprevir, an active component of the hepatitis C treatment Mavyret, also marketed as Maviret outside the United States.
About Amarin
Amarin Corporation plc is a biopharmaceutical company focused on developing and commercializing therapies intended to reduce cardiovascular risk. Its principal product is VASCEPA (icosapent ethyl), a prescription omega-3 fatty-acid medicine derived from highly purified eicosapentaenoic acid. VASCEPA was initially approved in the United States to help lower triglyceride levels in certain patients and later received expanded approval to reduce the risk of cardiovascular events in eligible adults with elevated cardiovascular risk.
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