Amgen vs Eli Lilly Which Is More Attractive?

Amgen and Eli Lilly are both well-known pharmaceutical companies that have been in the market for several decades. Both companies have a strong track record of developing innovative drugs and treatments in various therapeutic areas. Investors often compare the performance of Amgen and Eli Lilly stocks to determine which company may be a better investment option. By analyzing key financial indicators, market trends, and upcoming developments, investors can make informed decisions about investing in either Amgen or Eli Lilly stocks.

Amgen or Eli Lilly?

When comparing Amgen and Eli Lilly, 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 Eli Lilly.

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 3.29%, while Eli Lilly has a dividend yield of 0.65%. 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, Eli Lilly reports a 5-year dividend growth of 14.97% year and a payout ratio of 54.12%.

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 34.71 and Eli Lilly's P/E ratio at 85.69. 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 19.51 while Eli Lilly's P/B ratio is 50.37.

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 Eli Lilly's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amgen's ROE at 68.49% and Eli Lilly's ROE at 65.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $270.58 for Amgen and $786.37 for Eli Lilly. Over the past year, Amgen's prices ranged from $257.80 to $346.85, with a yearly change of 34.54%. Eli Lilly's prices fluctuated between $561.65 and $972.53, with a yearly change of 73.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.