Amgen vs Biogen Which Is Superior?

Amgen and Biogen are two prominent pharmaceutical companies that have gained significant attention from investors in the stock market. Amgen, known for its innovative treatments in areas such as cancer and inflammation, has a strong track record of delivering consistent returns to shareholders. Biogen, on the other hand, specializes in treating neurological disorders and has faced challenges in recent years with drug pipeline setbacks. Both companies are closely watched by analysts and investors for their growth potential and competitive strategies in the rapidly evolving healthcare sector.

Amgen or Biogen?

When comparing Amgen and Biogen, 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 Biogen.

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 3.33%, while Biogen has a dividend yield of -%. 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, Biogen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 34.36 and Biogen's P/E ratio at 13.53. 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 19.31 while Biogen's P/B ratio is 1.34.

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 Biogen's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and Biogen's ROE at 10.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $270.02 for Amgen and $149.94 for Biogen. Over the past year, Amgen's prices ranged from $257.80 to $346.85, with a yearly change of 34.54%. Biogen's prices fluctuated between $149.94 and $268.30, with a yearly change of 78.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.