Analyzing Amarin (NASDAQ:AMRN) and CNS Pharmaceuticals (NASDAQ:CNSP)

Amarin (NASDAQ:AMRN) and CNS Pharmaceuticals (NASDAQ:CNSP) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Volatility & Risk

Amarin has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, CNS Pharmaceuticals has a beta of 2.75, meaning that its stock price is 175% more volatile than the S&P 500.

Insider and Institutional Ownership

22.3% of Amarin shares are held by institutional investors. Comparatively, 14.0% of CNS Pharmaceuticals shares are held by institutional investors. 2.0% of Amarin shares are held by company insiders. Comparatively, 9.2% of CNS Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Amarin and CNS Pharmaceuticals’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amarin	$306.91 million	1.03	-$59.11 million	($0.12)	-6.42
CNS Pharmaceuticals	N/A	N/A	-$18.85 million	($174.00)	-0.02

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

Profitability

This table compares Amarin and CNS Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amarin	-18.96%	-9.48%	-6.34%
CNS Pharmaceuticals	N/A	-603.40%	-575.33%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Amarin and CNS Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amarin	2	1	1	0	1.75
CNS Pharmaceuticals	0	0	0	0	N/A

Amarin currently has a consensus price target of $1.08, suggesting a potential upside of 40.69%. Given Amarin’s higher probable upside, research analysts plainly believe Amarin is more favorable than CNS Pharmaceuticals.

Summary

Amarin beats CNS Pharmaceuticals on 7 of the 12 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 CNS Pharmaceuticals

CNS Pharmaceuticals, Inc., a clinical pharmaceutical company, engages in the development of anti-cancer drug candidates for the treatment of brain and central nervous system tumors. The company's lead drug candidate is Berubicin, which completed Phase I clinical trial that is used for the treatment of glioblastoma multiforme. It has license agreements with Houston Pharmaceuticals, Inc., Reata Pharmaceuticals, Inc., Pomeranian Medical University, and The University of Texas M.D. Anderson Cancer Center; and a development agreement with WPD Pharmaceuticals Inc. The company was incorporated in 2017 and is based in Houston, Texas.