Amarin (NASDAQ:AMRN – Get Free Report) and Kronos Bio (NASDAQ:KRON – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Volatility and Risk
Amarin has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Kronos Bio has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.
Valuation & Earnings
This table compares Amarin and Kronos Bio”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amarin | $228.61 million | 0.82 | -$59.11 million | ($4.00) | -2.28 |
| Kronos Bio | $9.85 million | 5.50 | -$112.67 million | ($1.43) | -0.62 |
Profitability
This table compares Amarin and Kronos Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amarin | -16.33% | -7.22% | -4.96% |
| Kronos Bio | -867.66% | -64.55% | -48.18% |
Institutional and Insider Ownership
22.3% of Amarin shares are held by institutional investors. Comparatively, 64.1% of Kronos Bio shares are held by institutional investors. 2.0% of Amarin shares are held by company insiders. Comparatively, 24.4% of Kronos Bio shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Amarin and Kronos Bio, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amarin | 1 | 0 | 1 | 0 | 2.00 |
| Kronos Bio | 0 | 2 | 1 | 0 | 2.33 |
Amarin currently has a consensus price target of $7.00, suggesting a potential downside of 23.16%. Kronos Bio has a consensus price target of $1.63, suggesting a potential upside of 83.00%. Given Kronos Bio’s stronger consensus rating and higher probable upside, analysts plainly believe Kronos Bio is more favorable than Amarin.
Summary
Kronos Bio beats Amarin on 8 of the 13 factors compared between the two stocks.
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.
About Kronos Bio
Kronos Bio, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of therapeutics for various cancer and other serious diseases in the United States. Its lead product candidates are KB-0742, an oral cyclin dependent kinase 9 inhibitor for the treatment of MYC-amplified solid tumors, which is in phase 2 clinical trial; and KB-9558, a core oncogenic transcription factor that drives multiple myeloma. The company was incorporated in 2017 and is headquartered in San Mateo, California.
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