Amarin (NASDAQ: AMRN) and Seres Therapeutics (NASDAQ:MCRB) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Insider & Institutional Ownership
38.1% of Amarin shares are owned by institutional investors. Comparatively, 78.9% of Seres Therapeutics shares are owned by institutional investors. 4.1% of Amarin shares are owned by insiders. Comparatively, 41.9% of Seres Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Amarin and Seres Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Amarin has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Seres Therapeutics has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
This is a summary of recent ratings for Amarin and Seres Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amarin presently has a consensus target price of $9.00, suggesting a potential upside of 175.23%. Seres Therapeutics has a consensus target price of $19.33, suggesting a potential upside of 148.82%. Given Amarin’s higher possible upside, analysts clearly believe Amarin is more favorable than Seres Therapeutics.
Earnings and Valuation
This table compares Amarin and Seres Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Amarin||$181.10 million||5.28||-$67.86 million||($0.25)||-13.08|
|Seres Therapeutics||$32.10 million||9.84||-$89.38 million||($2.21)||-3.52|
Amarin has higher revenue and earnings than Seres Therapeutics. Amarin is trading at a lower price-to-earnings ratio than Seres Therapeutics, indicating that it is currently the more affordable of the two stocks.
Amarin beats Seres Therapeutics on 8 of the 13 factors compared between the two stocks.
Amarin Corporation plc, a biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States. The company's lead product is Vascepa, a prescription-only omega-3 fatty acid capsule, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. It is also involved in developing Vascepa for the treatment of patients with high triglyceride levels who are also on statin therapy for elevated low-density lipoprotein cholesterol levels. Amarin Corporation plc sells its product principally to wholesalers and specialty pharmacy providers through direct sales force. The company was formerly known as Ethical Holdings plc and changed its name to Amarin Corporation plc in 1999. Amarin Corporation plc was founded in 1989 and is based in Dublin, Ireland.
About Seres Therapeutics
Seres Therapeutics, Inc., a microbiome therapeutics platform company, engages in developing biological drugs designed to restore health by repairing the function of a dysbiotic microbiome. Its lead product candidate is SER-109, a bacterial spore ecology, which is in Phase III clinical study to treat multiply recurrent Clostridium difficile infection (CDI). The company is also developing SER-287 that is in Phase Ib clinical study in patients with mild-to-moderate ulcerative colitis; and SER-262, a multi-strain Ecobiotic microbiome therapeutic candidate, which is in Phase Ib study in patients with primary CDI. In addition, its product candidates in pre-clinical development comprise SER-301, an Ecobiotic microbiome therapeutic candidate for the treatment of inflammatory bowel disease; SER-401 for use with checkpoint inhibitors in patients with solid tumors; and SER-155, an Ecobiotic microbiome therapeutic candidate for the prevention of transplant-related mortality. Seres Therapeutics, Inc. has a strategic collaboration with Nestle Health Science and Memorial Sloan Kettering Cancer Center. The company was formerly known as Seres Health, Inc. and changed its name to Seres Therapeutics, Inc. in May 2015. Seres Therapeutics, Inc. was founded in 2010 and is headquartered in Cambridge, Massachusetts.
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