Amgen vs AstraZeneca Which Is More Reliable?

Amgen and AstraZeneca are two major pharmaceutical companies that are often compared in terms of their performance on the stock market. Both companies are known for their innovative research and development efforts in the healthcare industry. Amgen, a biotechnology company, focuses on developing therapies for serious illnesses such as cancer and autoimmune diseases. AstraZeneca, a multinational pharmaceutical company, has a diverse portfolio of products ranging from cardiovascular drugs to respiratory therapies. Investors are constantly analyzing the financial health and growth potential of these companies to make informed decisions about their stock investments.

Amgen or AstraZeneca?

When comparing Amgen and AstraZeneca, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amgen and AstraZeneca.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amgen has a dividend yield of 3.3%, while AstraZeneca has a dividend yield of 2.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amgen reports a 5-year dividend growth of 10.04% year and a payout ratio of 112.70%. On the other hand, AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amgen P/E ratio at 34.60 and AstraZeneca's P/E ratio at 32.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amgen P/B ratio is 19.45 while AstraZeneca's P/B ratio is 5.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amgen has seen a 5-year revenue growth of 0.47%, while AstraZeneca's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and AstraZeneca's ROE at 16.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $271.48 for Amgen and $67.81 for AstraZeneca. Over the past year, Amgen's prices ranged from $257.80 to $346.85, with a yearly change of 34.54%. AstraZeneca's prices fluctuated between $60.47 and $87.68, with a yearly change of 45.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.