Fortress Biotech (NASDAQ:FBIO – Get Free Report) and Amarin (NASDAQ:AMRN – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
96.5% of Fortress Biotech shares are held by institutional investors. Comparatively, 22.3% of Amarin shares are held by institutional investors. 27.9% of Fortress Biotech shares are held by insiders. Comparatively, 2.0% of Amarin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Fortress Biotech and Amarin, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Fortress Biotech | 0 | 0 | 2 | 0 | 3.00 |
Amarin | 1 | 1 | 0 | 0 | 1.50 |
Profitability
This table compares Fortress Biotech and Amarin’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Fortress Biotech | -24.84% | -301.81% | -27.48% |
Amarin | -47.22% | -21.18% | -15.00% |
Valuation & Earnings
This table compares Fortress Biotech 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 | |
Fortress Biotech | $57.67 million | 1.89 | -$46.00 million | ($1.05) | -3.48 |
Amarin | $228.61 million | 1.46 | -$82.18 million | ($3.67) | -4.40 |
Fortress Biotech has higher earnings, but lower revenue than Amarin. Amarin is trading at a lower price-to-earnings ratio than Fortress Biotech, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Fortress Biotech has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Amarin has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Summary
Fortress Biotech beats Amarin on 11 of the 14 factors compared between the two stocks.
About Fortress Biotech
Fortress Biotech, Inc., a biopharmaceutical company, develops dermatology, pharmaceutical, and biotechnology products in the United States. The company markets dermatology products, such as Qbrexza a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane capsules for severe recalcitrant nodular acne; Amzeeq for severe acne vulgaris; Zilxi, a topical foam; Exelderm cream and solution for topical use; Targadox an oral doxycycline drug for adjunctive therapy for severe acne; Luxamend; sulconazole nitrate cream and solution for tinea cruris and tinea corporis; and doxycycline hyclate tablet. It also develops late stage product candidates, such as intravenous Tramadol for the treatment of post-operative acute pain; CUTX-101, an injection for the treatment of Menkes disease; Cosibelimab for metastatic cancers; Olafertinib for the treatment of patients with EGFR mutation-positive NSCLC; CAEL-101 for the treatment of amyloid light chain amyloidosis; Triplex vaccine for cytomegalovirus; and DFD-29 for the treatment of rosacea. The company’s early stage product candidates include Dotinurad for gout; MB-106 for B-cell non-hodgkin lymphoma; MB-101 for glioblastoma; MB-108 for recurrent GBM; MB-109 for refractory glioblastoma; AJ201, an androgen receptor degradation enhancer; BAER-101, a positive allosteric modulator; MB-117 for newly diagnosed x-linked severe combined immunodeficiency; and MB217 for previously transplanted; and MB-110 for RAG1 severe combined immunodeficiency. Its preclinical product candidates comprise Mayo Clinic In Vivo CAR T Platform Technology; AAV-ATP7A gene therapy; AVTS-001 gene therapy; CK-103 BET inhibitor; CEVA-D and CEVA-102; CK-302, an anti-GITR; CK-303, an anti-CAIX; and oligonucleotide platform. The company was formerly known as Coronado Biosciences, Inc. and changed its name to Fortress Biotech, Inc. in April 2015. Fortress Biotech, Inc. was incorporated in 2006 and is based in Bay Harbor Islands, Florida.
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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