Journey Medical (NASDAQ:DERM) and Amarin (NASDAQ:AMRN) Critical Contrast

Journey Medical (NASDAQ:DERM) and Amarin (NASDAQ:AMRN) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Journey Medical and Amarin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Journey Medical	1	0	2	0	2.33
Amarin	2	1	0	0	1.33

Journey Medical presently has a consensus target price of $14.00, suggesting a potential upside of 215.32%. Amarin has a consensus target price of $13.00, suggesting a potential upside of 11.02%. Given Journey Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Journey Medical is more favorable than Amarin.

Profitability

This table compares Journey Medical and Amarin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Journey Medical	-8.95%	-20.23%	-6.60%
Amarin	-10.87%	-0.52%	-0.36%

Insider and Institutional Ownership

7.2% of Journey Medical shares are held by institutional investors. Comparatively, 22.3% of Amarin shares are held by institutional investors. 14.5% of Journey Medical shares are held by insiders. Comparatively, 4.2% of Amarin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Journey Medical 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
Journey Medical	$61.86 million	2.03	-$11.43 million	($0.22)	-20.18
Amarin	$176.11 million	1.40	-$38.80 million	($0.96)	-12.20

Journey Medical has higher earnings, but lower revenue than Amarin. Journey Medical is trading at a lower price-to-earnings ratio than Amarin, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Journey Medical has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Amarin has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Summary

Journey Medical beats Amarin on 9 of the 13 factors compared between the two stocks.

About Journey Medical

Journey Medical Corporation is a commercial-stage pharmaceutical company focused on developing and commercializing prescription products for medical dermatology. The company targets conditions that affect the skin, hair and nails, with an emphasis on products that address significant patient needs and can be marketed through its specialty sales organization. Its portfolio includes Qbrexza (glycopyrronium) cloth, a topical treatment for primary axillary hyperhidrosis, and Targadox (doxycycline hyclate) delayed-release capsules, which are used to treat moderate-to-severe inflammatory acne vulgaris.

About Amarin

Amarin Corporation plc is a biopharmaceutical company focused on cardiovascular health. Its principal product is VASCEPA, a prescription medicine containing icosapent ethyl, an omega-3 fatty acid derivative. In the United States, VASCEPA is approved for use with a statin and other measures to reduce the risk of certain cardiovascular events in eligible adults with elevated triglycerides. It is also approved as an adjunct to diet to lower triglyceride levels in adults with severe hypertriglyceridemia.