Amarin (NASDAQ:AMRN – Get Free Report) and Kronos Bio (NASDAQ:KRON – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Amarin and Kronos Bio, as provided by MarketBeat.com.
| 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 target price of $7.00, indicating a potential downside of 23.16%. Kronos Bio has a consensus target price of $1.63, indicating a potential upside of 83.00%. Given Kronos Bio’s stronger consensus rating and higher possible upside, analysts plainly believe Kronos Bio is more favorable than Amarin.
Risk and Volatility
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 owned by institutional investors. Comparatively, 64.1% of Kronos Bio shares are owned by institutional investors. 2.0% of Amarin shares are owned by insiders. Comparatively, 24.4% of Kronos Bio shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Amarin and Kronos Bio”s top-line revenue, earnings per share 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 |
Amarin has higher revenue and earnings than Kronos Bio. Amarin is trading at a lower price-to-earnings ratio than Kronos Bio, indicating that it is currently the more affordable of the two stocks.
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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