Critical Survey: Abbott Laboratories (ABT) versus Marinus Pharmaceuticals (MRNS)

Abbott Laboratories (NYSE: ABT) and Marinus Pharmaceuticals (NASDAQ:MRNS) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Volatility & Risk

Abbott Laboratories has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Marinus Pharmaceuticals has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500.

Dividends

Abbott Laboratories pays an annual dividend of $1.06 per share and has a dividend yield of 1.9%. Marinus Pharmaceuticals does not pay a dividend. Abbott Laboratories pays out 83.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Abbott Laboratories has raised its dividend for 44 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Abbott Laboratories and Marinus Pharmaceuticals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Abbott Laboratories 0 5 9 0 2.64
Marinus Pharmaceuticals 0 0 1 0 3.00

Abbott Laboratories currently has a consensus target price of $57.64, indicating a potential upside of 2.35%. Marinus Pharmaceuticals has a consensus target price of $11.00, indicating a potential upside of 107.55%. Given Marinus Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Marinus Pharmaceuticals is more favorable than Abbott Laboratories.

Earnings and Valuation

This table compares Abbott Laboratories and Marinus Pharmaceuticals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Abbott Laboratories $23.61 billion 4.14 $5.14 billion $1.27 44.35
Marinus Pharmaceuticals N/A N/A -$22.16 million ($1.11) -4.77

Abbott Laboratories has higher revenue and earnings than Marinus Pharmaceuticals. Marinus Pharmaceuticals is trading at a lower price-to-earnings ratio than Abbott Laboratories, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Abbott Laboratories and Marinus Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Abbott Laboratories 8.37% 14.50% 6.26%
Marinus Pharmaceuticals N/A -107.40% -75.54%

Institutional and Insider Ownership

71.5% of Abbott Laboratories shares are owned by institutional investors. Comparatively, 23.6% of Marinus Pharmaceuticals shares are owned by institutional investors. 0.8% of Abbott Laboratories shares are owned by company insiders. Comparatively, 6.4% of Marinus Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Abbott Laboratories beats Marinus Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Abbott Laboratories

Abbott Laboratories is engaged in the discovery, development, manufacture and sale of a range of healthcare products. The Company operates through four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products and Vascular Products. Its Established Pharmaceutical Products include a range of branded generic pharmaceuticals manufactured around the world and marketed and sold outside the United States. Its Diagnostic Products include a range of diagnostic systems and tests. Its Nutritional Products include a range of pediatric and adult nutritional products. Its Company’s Vascular Products include a range of coronary, endovascular, vessel closure and structural heart devices for the treatment of vascular disease. The Company, through St. Jude Medical, Inc., also offers products, such as rhythm management products, electrophysiology products, heart failure related products, vascular products, structural heart products and neuromodulation products.

About Marinus Pharmaceuticals

Marinus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company focuses on developing and commercializing therapeutics to treat epilepsy and neuropsychiatric disorders. Its clinical-stage product candidate, ganaxolone, is a modulator being developed in various dose forms, including intravenous, oral capsule and oral liquid, intended to provide more treatment options to adult and pediatric patient populations in both acute and chronic care settings. Ganaxolone acts on the GABAA receptor, a target in the brain known for both anti seizure and anti anxiety effects through positive allosteric modulation. The Company is developing ganaxolone for multiple epilepsy and other neuropsychiatric indications, including adjunctive, or add-on, therapy for the treatment of drug-resistant focal onset seizures; status epilepticus; Fragile X Syndrome, and PCDH19 pediatric epilepsy.

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